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?:abstract
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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.
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?:author
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?:comment
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(Eurobarometer)
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?:dataSource
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Eurobarometer-Bibliography
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?:dateModified
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?:datePublished
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?:duplicate
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?:fromPage
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is
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of
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?:issueNumber
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is
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?:name
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Trust in the monetary authority
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?:provider
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?:publicationType
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?:sourceInfo
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(14), 46, 2014
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Bibsonomy
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?:studyGroup
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EB - Standard and Special Eurobarometer
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?:tags
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2014
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EB_input2015
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EB_pro
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Eurobarometer
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FDZ_IUP
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checked
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english
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input2015
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techreport
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?:toPage
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rdf:type
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?:url
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