The institutional and policy features of Eurozone represent a field of special interest to analyse the process of integration. The aim of the paper is to investigate on the existence of a trade-off between the compliance to fiscal rules and trust as a proxy of institutional legitimacy in Eurozone. At this scope the relation between trust in the European Central Bank and structural adjustment together with unemployment and inflation, in 11 Eurozone countries from 1999 to 2013 is tested. The empirical results show that a) discretionary policy measures have an opposite sign impact on trust; b) in peripheral countries the structural adjustment is the main variable affecting trust in ECB; c) unemployment plays a key role; d) deviation from the objective of 2% of inflation is not significant. These outcomes evidence the existence of a trade-off between the fiscal rules commitments and the European institutional consolidation process.
|Titolo:||FISCAL RULES COMPLIANCE AND TRUST IN INSTITUTION IN EUROZONE: THE CASE OF EUROPEAN CENTRAL BANK|
CANALE, Rosaria Rita (Corresponding)
|Data di pubblicazione:||2017|
|Appare nelle tipologie:||1.1 Articolo in rivista|