Trust among strangers is at the heart of well-functioning market economics. This column argues that individual trust beliefs are related to individual trustworthiness, which in turn is related to the values parents transmit to their children. It adds that if someone forms trust beliefs about unknown people by attributing to others his own trustworthiness, he is bound to make mistakes by being either too naïve or too wary.

The Eurozone crisis has meant slow growth, rising unemployment, and social unrest. This column gauges the impact of all this on European citizens‘ opinions about the euro and EU institutions. Using Eurobarometer surveys, the authors find that, within the Eurozone, the crisis has only marginally lowered support for the euro but has led to a sharp fall in public trust in the ECB.

Can trust be taught in the classroom? The authors of CEPR DP8625 present evidence that progressive or 'horizontal' teaching methods can help children develop beliefs that reinforce social capital, with broad benefits for society and the economy overall.

For centuries, Europe was ruled by empires wielding global influence. This column shows that these empires can leave behind a long-lasting legacy through cultural norms. Comparing individuals on opposite sides of the long-gone Habsburg Empire border within five countries, it shows that firms and people living in what used to be the empire have higher trust in courts and police.

Public distrust of bankers and financial markets has risen dramatically with the financial crisis. This column argues that this loss of trust in the financial system played a critical role in the collapse of economic activity that followed. To undo the damage, financial regulation needs to focus on restoring that trust.

Virtually every commercial transaction involves trust, and more trusting societies tend to be richer. But does it pay individuals to trust? This column suggests that relationship between trust and income is not always increasing but is instead hump-shaped. Individuals that mistrust too much tend to miss profitable opportunities, while those who are too trusting are cheated abnormally often.

Most observers agree that central banks can claim partial credit for the stabilisation that have been achieved and the prospect of a recovery. This column warns that the general public seems to hold a completely different opinion; trust in central banks has declined and the reaction of central banks to the crisis is generally judged as unsatisfactory. Central bankers all over the world should redouble their efforts to regain the trust of the people towards their institution.

Recent research argues that culture affects economic outcomes. Do markets instil cultural values that support good outcomes? This column provides evidence that more competitive markets raise employees’ trust levels. That suggests that competitive markets build the values that support them.

What are the fundamental causes of differences in income per capita across countries? Although there is still little consensus on the answers to this question, it is often argued that social attitudes such as trust are one of the main determinants of economic development.