Ebooks for the Classroom+Faculty

Institutional trust and economic policy Lessons from the history of the Euro
ISBN: 9786155225345
Platform/Publisher: De Gruyter / Central European University Press
Digital rights: Users: Unlimited; Printing: Unlimited; Download: Unlimited

The book seeks to link theoretical debates on the relevance of trust in economic outcomes with the current arguments about the origins and lessons of the subprime crisis. By what mechanisms does trust influence economic outcomes? Under what conditions do these mechanisms prevail? How do debates about trust help our understanding of the subprime crisis in the European Union? By integrating insights from Post-Keynesian, Austrian and new institutional economics, the central proposition of the analysis is that the presence or absence of institutional trust creates virtuous and vicious cycles in law-abiding, which critically influence the possibility for economic agents to have realistic long-term plans.

Dóra Győrffy is Associate Professor at the Department of International Studies of the Péter Pázmány Catholic University, Hungary.