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The impact of high inflation on trust in national politics and central banks

Author

Listed:
  • Carin van der Cruijsen
  • Jakob de Haan
  • Maarten van Rooij

Abstract

Little is known about the impact of high inflation on public trust. Using a survey in the Netherlands, we find that the recent increase in inflation is associated with a decline in trust in the Dutch central bank and Dutch politics. The higher individuals’ perceived inflation is and the harder it is for them to make ends meet, the lower their trust in the European Central Bank, the Dutch central bank, and Dutch politics. We also find that people trust authorities considered responsible for bringing inflation down less. Quite remarkably, most people think government is responsible for maintaining price stability.

Suggested Citation

  • Carin van der Cruijsen & Jakob de Haan & Maarten van Rooij, 2023. "The impact of high inflation on trust in national politics and central banks," Working Papers 762, DNB.
    • Handle: RePEc:dnb:dnbwpp:762
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    References listed on IDEAS

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    Cited by:

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    2. Dräger, Lena, 2023. "Central Bank Communication with the General Public," Hannover Economic Papers (HEP) dp-713, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    3. Apeti, Ablam Estel & Edoh, Eyah Denise, 2024. "Economic sanctions and sovereign debt default," European Journal of Political Economy, Elsevier, vol. 85(C).
    4. Popova, Olga & See, Sarah Grace & Nikolova, Milena & Otrachshenko, Vladimir, 2023. "The Societal Costs of Inflation and Unemployment," IZA Discussion Papers 16541, Institute of Labor Economics (IZA).
    5. Hayo, Bernd & Méon, Pierre-Guillaume, 2024. "Preaching to the agnostic: Inflation reporting can increase trust in the central bank but only among people with weak priors," Journal of International Money and Finance, Elsevier, vol. 142(C).
    6. Buelens, Christian, 2025. "Googling ‘inflation’: Household inflation attention across the euro area," European Journal of Political Economy, Elsevier, vol. 89(C).
    7. Michael McMahon, 2024. "Lessons for Monetary Policy Communication: Communication, Getting Through and Expectation Formation," RBA Annual Conference Papers acp2024-01, Reserve Bank of Australia, revised May 2025.
    8. Nandnaba, Alfred Michel, 2025. "The dark political side of US economic sanctions: An overview of renewable energy production in developing countries," Energy, Elsevier, vol. 335(C).

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    Keywords

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    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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