Beyond Technocracy: Toward a Holistic Approach to Central Bank Trust

We examine public trust in the European Central Bank (ECB) and its determinants using data from the Bundesbank Household Panel survey for Germany. Drawing on insights from political science and psychology, we move beyond technocracy and develop a more holistic account of central bank trust. We show that trust in the ECB is associated with both perceived competence—defined as effectiveness in maintaining price stability and reliance on rules, scientific analysis and data—and perceived values—particularly the integrity of senior policymakers, honest communication and broader societal concern. Respondents who report that competence matters more report significantly higher trust in the ECB. In contrast, those who place greater importance on values tend to express lower trust. Trust in the ECB is also strongly associated with trust in political institutions more generally and, to a lesser extent, interpersonal trust. Together, our findings offer a fresh perspective on trust in central banks, indicating that it is necessary to move beyond a purely technocratic approach to central bank policy. Importantly, such efforts are fully consistent with—and may even support central banks’ existing mandates and institutional independence.