We examine how the transparency of the European Central Bankś monetary policy affects the amount of trust that the … exerts a non-linear effect on trust. Transparency increases trust, but only up to a certain point; too much transparency … harms trust. This result is robust to controlling for a number of macroeconomic conditions, financial stability transparency …

In the aftermath of the financial crisis, the ECB has experienced an unprecedented deterioration in the level of trust …. This raises the question as to what factors determine trust in central banking. We use a unique cross-country dataset which … role in the trust-building process. Our results suggest that agents are boundedly rational in the trust-building process …