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The association of high perceived inflation with trust in national politics and central banks✰

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  • van der Cruijsen, Carin
  • de Haan, Jakob
  • van Rooij, Maarten

Abstract

Using a survey in the Netherlands, we find that high inflation perceptions are associated with low trust in Dutch politics and the Dutch central bank, also if we control for a broad array of potential confounding factors. The higher individuals’ perceived inflation is and the harder it is for them to make ends meet, the lower their trust in Dutch politics, the Dutch central bank, and the European Central Bank. We also find that trust in an authority is lower when it is considered responsible for bringing inflation down. Quite remarkably, most people think the government is responsible for maintaining price stability.

Suggested Citation

  • van der Cruijsen, Carin & de Haan, Jakob & van Rooij, Maarten, 2025. "The association of high perceived inflation with trust in national politics and central banks✰," Journal of Banking & Finance, Elsevier, vol. 171(C).
    • Handle: RePEc:eee:jbfina:v:171:y:2025:i:c:s0378426624002826
    DOI: 10.1016/j.jbankfin.2024.107368
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    Cited by:

    1. Jakob de Haan, 2025. "No Way Back? ECB’s Forward Guidance and Policy Normalisation," Politics and Governance, Cogitatio Press, vol. 13.

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    More about this item

    Keywords

    Inflation perceptions; Trust; Financial stress; Central banks; National politics;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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