IDEAS home Printed from https://ideas.repec.org/a/mnb/finrev/v24y2025i1p29-51.html
   My bibliography  Save this article

The Evolution of Trust in Central Banks during the Covid Crisis

Author

Listed:
  • Zoltan Korsos

    (Budapest Metropolitan University)

  • Eszter Baranyai

    (Magyar Nemzeti Bank, Budapest Metropolitan University)

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.

Suggested Citation

  • Zoltan Korsos & Eszter Baranyai, 2025. "The Evolution of Trust in Central Banks during the Covid Crisis," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 24(1), pages 29-51.
    • Handle: RePEc:mnb:finrev:v:24:y:2025:i:1:p:29-51
    as

    Download full text from publisher

    File URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-24-1-st2-korsos-baranyai.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    central bank; trust; Eurobarometer survey; Covid; crisis; European Central Bank;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mnb:finrev:v:24:y:2025:i:1:p:29-51. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Morvay Endre The email address of this maintainer does not seem to be valid anymore. Please ask Morvay Endre to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/mnbgvhu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.