Roth, Felix Gros, Daniel Nowak-Lehmann D., Felicitas
cege Discussion Papers No. 124
University of Göttingen, Center for European, Governance and Economic Development Research (cege), Göttingen
In the aftermath of the financial crisis trust, in the European Central Bank (ECB) has reached an historical low. Taking panel data and using a fixed effects DFGLS estimation for a 12–country sample over the time period 1999 to 2011 with a total of 312 observations, this paper detects a structural break in citizens’ trust in the ECB. The paper confirms that during the pre-crisis period, citizens’ trust in the ECB was driven by economic growth. In crisis time, however, trust in the ECB is both driven by inflation and unemployment.