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Trust in Central Banks

Author

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  • Michael Ehrmann

Abstract

Trust in the central bank is an essential ingredient for a successful conduct of monetary policy. However, for many central banks trust has recently declined, for instance in the wake of the post‐pandemic inflation surge, due to large errors in central banks’ inflation forecasts, or given problems when exiting from forward guidance. The rapid, substantial, and persistent erosion of trust makes it clear that trust needs to be earned continuously. This paper reviews why trust is important, what determines it and how central banks can enhance it. It also argues that it is important for central banks to improve the measurement and monitoring of trust. It ends by highlighting some future challenges for maintaining trust.

Suggested Citation

  • Michael Ehrmann, 2026. "Trust in Central Banks," Journal of Economic Surveys, Wiley Blackwell, vol. 40(1), pages 492-504, February.
    • Handle: RePEc:bla:jecsur:v:40:y:2026:i:1:p:492-504
    DOI: 10.1111/joes.12703
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    Cited by:

    1. is not listed on IDEAS
    2. Coleman, Winnie & Nautz, Dieter, 2025. "Asymmetric inflation target credibility," Journal of International Money and Finance, Elsevier, vol. 157(C).
    3. Grebe, Moritz & Tillmann, Peter, 2026. "Inflation expectations and a conservative central banker: Evidence from a natural experiment," IMFS Working Paper Series 234, Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS).
    4. Klaus Gründler & Michael Lamla & Niklas Potrafke & Timo Wochner, 2026. "Experts as Intermediaries," CESifo Working Paper Series 12492, CESifo.
    5. Philipp Poyntner & Sofie R. Waltl, 2026. "The Connection Between Monetary Policy and Housing Prices: Public Perception and Expert Communication," Papers 2601.08957, arXiv.org, revised Jan 2026.
    6. Guillochon, Justine & Ellen, Saskia ter, 2025. "Inflation concern, attention and central bank trust," Journal of Economic Behavior & Organization, Elsevier, vol. 239(C).
    7. Marco Fanari & Enrico Bernardini & Elisabetta Cecchet & Francesco Columba & Johnny Di Giampaolo & Gabriele Fraboni & Donatella La Licata & Simone Letta & Gianluca Mango & Gabriele Fraboni, 2025. "Stewardship Policies. A Survey of the Main Issues," Mercati, infrastrutture, sistemi di pagamento (Markets, Infrastructures, Payment Systems) 65, Bank of Italy, Directorate General for Markets and Payment System.
    8. Jung, Alexander & Mongelli, Francesco Paolo, 2025. "Central bank communication with non-experts: insights from a randomized field experiment," Working Paper Series 3103, European Central Bank.

    More about this item

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G53 - Financial Economics - - Household Finance - - - Financial Literacy

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