implement a control strategy, which consists of low effort discretion and little or no rent-sharing, or they implement a trust … control strategy prevails, while the possibility of screening renders the trust strategy profitable. The introduction of … competition substantially fosters the trust strategy, reduces market segmentation, and leads to large welfare gains for both …

Trust in the ECB, as measured by the standard Eurobarometer surveys has fallen to unprecedented lows - especially in … the larger euro area countries. We find that up to the start of the recession in 2008 trust in the ECB was little affected … by business cycle variables such as growth and even inflation. This changed radically with the recession, with trust in …