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The ECB's climate activities and public trust

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  • Eickmeier, Sandra
  • Petersen, Luba

Abstract

As central banks, including the European Central Bank (ECB), adopt climaterelated responsibilities, gauging public support becomes essential. Drawing on a June 2023 Bundesbank household survey, we find that 69% of households report increased trust in the ECB due to its climate actions, valuing the institution's broader scope and concern. While 17% and 20% of households express concerns over risks to price stability or independence, 23% believe climate engagement reinforces the ECB's core objectives. An information intervention indicates minimal impact on household inflation expectations, suggesting a disconnect between institutional trust and inflation outlooks. An internal survey reveals that central bankers accurately gauge trust impacts but tend to overestimate effects on inflation expectations. Overall, our findings indicate broad public support for the ECB's climate initiatives.

Suggested Citation

  • Eickmeier, Sandra & Petersen, Luba, 2024. "The ECB's climate activities and public trust," Discussion Papers 43/2024, Deutsche Bundesbank.
    • Handle: RePEc:zbw:bubdps:311842
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    More about this item

    Keywords

    Central bank trust; central bank credibility; inflation expectations; climate change; green policies; survey; central bank communication; uncertainty;
    All these keywords.

    JEL classification:

    • E7 - Macroeconomics and Monetary Economics - - Macro-Based Behavioral Economics
    • E59 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Other
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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