Template-Type: ReDIF-Article 1.0

Author-Name: Zoltan Korsos
Author-Workplace-Name: Budapest Metropolitan University
Author-Email: zoltan@korsos.hu
Author-Person: 

Author-Name: Eszter Baranyai 
Author-Workplace-Name: Magyar Nemzeti Bank, Budapest Metropolitan University
Author-Email: baranyaie@mnb.hu
Author-Person: pba2095

Title: The Evolution of Trust in Central Banks during the Covid Crisis

Abstract: This paper examines the evolution of trust in central banks during the Covid-19
pandemic in euro area countries, using the example of the European Central Bank.
The study focuses on the effects of the pandemic, but also analyses the role of
demographic, economic and political factors. We use a probit model with data
from Eurobarometer and the Oxford COVID-19 Government Response Tracker.
Our results show that the pandemic led to a decline in institutional trust, though
this effect is not specific to central banks. There is a positive relationship between
stricter government measures and trust in central banks. Extreme political views
- both left-wing and right-wing views - are associated with lower trust in central
banks. Our results highlight the co-movements of trust in particular institutions,
and draw attention to the need for a deeper understanding of the trust dynamics
within extremist groups.

Classification-JEL: E58, F33, Z13
Keywords: central bank, trust, Eurobarometer survey, Covid, crisis, European Central Bank
Pages: 29-51
Volume: 24
Issue: 1
Year: 2025
File-URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-24-1-st2-korsos-baranyai.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:24:y:2025:i:1:p:29-51