Value

Abstract

Why does trust collapse during crises? What are the consequences? How is it possible to build value based on trust? Padua attempts to provide answers via the original concept of ‘Economy of Trust’, or the process of value building though a prevalent trust component in complex socio-economic systems, accelerated by speculative contexts and in conditions of uncertainty. The Economy of Trust, reflecting the economic context within the current 2008 recession through the social behaviour of the individual, contains the essence of Keynesian thought. It builds value by replacing guarantees in deregulated contexts and in situations of loss of institutional power. There are five sociological reasons behind the development of the Economy of Trust in a Nominal economy: uncertainty, irrationality, speculation, complexity and stories.