Working Paper No. 1053

Does Social Trust Speed up Reforms? The Case of Central-Bank Independence

Published: January 8, 2015Pages: 24Keywords: Central banks; Independence; Social trust; Inflation; Monetary policy; ReformJEL-codes: E52; E58; P48; Z13
Published version

Does Social Trust Speed up Reforms? The Case of Central-Bank Independence Niclas Berggren, Sven-Olov Daunfeldt and Jörgen Hellström


Many countries have undertaken central-bank independence reforms, but the years of implementation differ. What explains such differences in timing? This is of interest more broadly, as it sheds light on factors that matter for the speed at which economic reforms come about. We study a rich set of potential determinants, both economic and political, but put special focus on a cultural factor, social trust.

We find empirical support for an inverse u-shape: Countries with low and high social trust implemented their reforms earlier than countries with intermediate levels. We make use of two factors to explain this pattern: the need to undertake reform (which is more urgent in countries with low social trust) and the ability to undertake reform (which is greater in countries with high social trust).

Niclas Berggren

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Ph: +46 8 665 4520
niclas.berggren@ifn.se

Integrating Immigrants into the Nordic Labour Markets

An Overall Perspective

Pages-from-2019-Calmfors-Gassen---Integrating-Immigrants-into-the-Nordic-Labour-Markets.gif

Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

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