D. Bursian, and E. Faia. SAFE Working Paper Series, 14. Research Center SAFE - Sustainable Architecture for Finance in Europe, Goethe University Frankfurt, (2014)
Abstract
Trust in policy makers uctuates signi cantly over the cycle and a¤ects the transmission mechanism. Despite this it is absent from the literature. We build a monetary model embedding trust cycles; the latter emerge as an equilibrium phenomenon of a game-theoretic interaction between atomistic agents and the monetary authority. Trust a¤ects agentsstochastic discount factors, namely the price of future risk, and through this it interacts with the monetary trans- mission mechanism. Using data from the Eurobarometer surveys we analyze the link between trust and the transmission mechanism of macro and monetary shocks: empirical results are in line with theoretical ones.
%0 Report
%1 bursian2013trust
%A Bursian, Dirk
%A Faia, Ester
%D 2014
%K 2014 EB_input2015 Eurobarometer FDZ_IUP checked english input2015 techreport
%N 14
%P 46
%T Trust in the monetary authority
%U https://ideas.repec.org/p/zbw/safewp/14.html
%X Trust in policy makers uctuates signi cantly over the cycle and a¤ects the transmission mechanism. Despite this it is absent from the literature. We build a monetary model embedding trust cycles; the latter emerge as an equilibrium phenomenon of a game-theoretic interaction between atomistic agents and the monetary authority. Trust a¤ects agentsstochastic discount factors, namely the price of future risk, and through this it interacts with the monetary trans- mission mechanism. Using data from the Eurobarometer surveys we analyze the link between trust and the transmission mechanism of macro and monetary shocks: empirical results are in line with theoretical ones.
@techreport{bursian2013trust,
abstract = {Trust in policy makers uctuates signi cantly over the cycle and a¤ects the transmission mechanism. Despite this it is absent from the literature. We build a monetary model embedding trust cycles; the latter emerge as an equilibrium phenomenon of a game-theoretic interaction between atomistic agents and the monetary authority. Trust a¤ects agentsstochastic discount factors, namely the price of future risk, and through this it interacts with the monetary trans- mission mechanism. Using data from the Eurobarometer surveys we analyze the link between trust and the transmission mechanism of macro and monetary shocks: empirical results are in line with theoretical ones.},
added-at = {2019-03-20T18:49:19.000+0100},
author = {Bursian, Dirk and Faia, Ester},
biburl = {https://www.bibsonomy.org/bibtex/2f43ec9f84b944a0cf67e60c59111e8c1/gesis_dump},
institution = {Research Center SAFE - Sustainable Architecture for Finance in Europe, Goethe University Frankfurt},
interhash = {c32eb222fcec3a5b05bee91ef7479fe7},
intrahash = {f43ec9f84b944a0cf67e60c59111e8c1},
keywords = {2014 EB_input2015 Eurobarometer FDZ_IUP checked english input2015 techreport},
note = {(Eurobarometer)},
number = 14,
pages = 46,
tagadata-svko-dda-test = {10647},
tagadata-svkoddatest2 = {10640},
timestamp = {2019-10-01T13:01:11.000+0200},
title = {Trust in the monetary authority},
type = {SAFE Working Paper Series},
url = {https://ideas.repec.org/p/zbw/safewp/14.html},
year = 2014
}