, we find that both inflation and unemployment have a negative link with confidence in financial institutions. While … inflation is generally unassociated with confidence in government and leadership approval, unemployment still has a strong … for confidence in political and financial institutions, the associations we document are more substantial for the cohorts …

Trust in the central bank is an essential ingredient for a successful conduct of monetary policy. However, for many … central banks trust has recently declined, for instance in the wake of the post-pandemic inflation surge, due to large errors … persistent erosion of trust makes it clear that trust needs to be earned continuously. This paper reviews why trust is important …