Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/174324
Authors: 
Hayo, Bernd
Neumeier, Florian
Year of Publication: 
2017
Series/Report no.: 
Joint Discussion Paper Series in Economics 28-2017
Abstract: 
Employing data from a representative population survey conducted in New Zealand in 2016, this paper examines factors that influence, or are at least associated with, public trust in the Reserve Bank of New Zealand (RBNZ). The large number of specifically designed questions allows studying the relationship between six dimensions and RBNZ trust: (i) economic situation, (ii) monetary policy knowledge, (iii) nonspecific trust, (iv) interest and information search, (v) politicians and government, and (vi) socio-demographic indicators. Using ordered logit models, we find that at least one indicator from each of these six dimensions has a statistically significant conditional correlation with individuals' trust in RBNZ. Satisfaction with own financial situation, objective knowledge about the RBNZ's main policy objective, responsibility for interest rate setting, subjective knowledge about inflation, trust in government institutions, desire to be informed about RBNZ, age, and full-time selfemployment have a positive relationship with RBNZ trust. The reverse is found for respondents who do not keep up with RBNZ and believe that politicians are long-term oriented. In terms of economic relevance, institutional trust has the largest single impact on RBNZ trust and the subjective and objective knowledge indicators show a strong combined influence.
Subjects: 
Central Bank Trust
Survey
Public Attitudes
Reserve Bank of New Zealand
Monetary Policy
JEL: 
E52
E58
Z1
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.