Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/228989 
Year of Publication: 
2020
Series/Report no.: 
ECB Working Paper No. 2375
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
Using micro data from the 2015 Dutch CentERpanel, we examine whether trust in the European Central Bank (ECB) influences individuals' expectations and uncertainty about future inflation, and whether it anchors inflation expectations. We find that higher trust in the ECB lowers inflation expectations on average, and significantly reduces uncertainty about future inflation. Moreover, results from quantile regressions suggest that trusting the ECB increases (lowers) inflation expectations when the latter are below (above) the ECB's inflation target. These findings hold after controlling for people's knowledge about the objectives of the ECB.
Subjects: 
Consumer expectations
inflation uncertainty
anchoring
trust in the ECB
JEL: 
D12
D81
E03
E40
E58
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-4018-4
Document Type: 
Working Paper

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