%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 }