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Public Support for the Euro and Trust in the ECB : The First Two Decades of the Common Currency

Roth, Felix and Jonung, Lars LU (2022) In Contributions to Economics 2. p.1-19
Abstract

This contribution examines the evolution of public support for the euro since its introduction as a virtual currency in 1999, using a unique set of data not available for any other currency. We focus on the role of economic factors in determining the popularity of the euro. We find that a majority of citizens support the euro in each individual member country of the euro area (EA). The economic crisis in the EA provoked by the Great Recession led to a slight decline in public support, but the recent economic recovery has strengthened that support, which is now approaching historically high levels after two decades of existence. A similar, but less pronounced upturn in trust in the ECB can also be detected during the recovery. Our... (More)

This contribution examines the evolution of public support for the euro since its introduction as a virtual currency in 1999, using a unique set of data not available for any other currency. We focus on the role of economic factors in determining the popularity of the euro. We find that a majority of citizens support the euro in each individual member country of the euro area (EA). The economic crisis in the EA provoked by the Great Recession led to a slight decline in public support, but the recent economic recovery has strengthened that support, which is now approaching historically high levels after two decades of existence. A similar, but less pronounced upturn in trust in the ECB can also be detected during the recovery. Our econometric work demonstrates that unemployment is a key driver of support behind the euro. Given these developments, we discuss whether the large and persistent majority support enjoyed by the euro equips the currency to weather populist challenges during its third decade.

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Please use this url to cite or link to this publication:
author
and
organization
publishing date
type
Chapter in Book/Report/Conference proceeding
publication status
published
subject
keywords
ECB, EU, Euro, Monetary union, Optimum currency area, Public support, Trust, Unemployment
host publication
Public Support for the Euro : Essays on Labor Productivity, Monetary Economics, and Political Economy - Essays on Labor Productivity, Monetary Economics, and Political Economy
series title
Contributions to Economics
volume
2
pages
19 pages
publisher
Springer Science and Business Media B.V.
external identifiers
  • scopus:85126814735
ISSN
1431-1933
2197-7178
DOI
10.1007/978-3-030-86024-0_1
language
English
LU publication?
yes
id
9e36d038-1f5c-432e-8547-ad97bc814ff8
date added to LUP
2022-04-20 08:47:19
date last changed
2024-07-01 08:54:32
@inbook{9e36d038-1f5c-432e-8547-ad97bc814ff8,
  abstract     = {{<p>This contribution examines the evolution of public support for the euro since its introduction as a virtual currency in 1999, using a unique set of data not available for any other currency. We focus on the role of economic factors in determining the popularity of the euro. We find that a majority of citizens support the euro in each individual member country of the euro area (EA). The economic crisis in the EA provoked by the Great Recession led to a slight decline in public support, but the recent economic recovery has strengthened that support, which is now approaching historically high levels after two decades of existence. A similar, but less pronounced upturn in trust in the ECB can also be detected during the recovery. Our econometric work demonstrates that unemployment is a key driver of support behind the euro. Given these developments, we discuss whether the large and persistent majority support enjoyed by the euro equips the currency to weather populist challenges during its third decade.</p>}},
  author       = {{Roth, Felix and Jonung, Lars}},
  booktitle    = {{Public Support for the Euro : Essays on Labor Productivity, Monetary Economics, and Political Economy}},
  issn         = {{1431-1933}},
  keywords     = {{ECB; EU; Euro; Monetary union; Optimum currency area; Public support; Trust; Unemployment}},
  language     = {{eng}},
  pages        = {{1--19}},
  publisher    = {{Springer Science and Business Media B.V.}},
  series       = {{Contributions to Economics}},
  title        = {{Public Support for the Euro and Trust in the ECB : The First Two Decades of the Common Currency}},
  url          = {{http://dx.doi.org/10.1007/978-3-030-86024-0_1}},
  doi          = {{10.1007/978-3-030-86024-0_1}},
  volume       = {{2}},
  year         = {{2022}},
}