Advanced Search
MyIDEAS: Login to save this article or follow this journal

Money, Trust and Hierarchies: Understanding the Foundations for Placing Confidence in Complex Economic Institutions

Contents:

Author Info

  • Alexander Lascaux
Registered author(s):

    Abstract

    This paper offers an outline of the institutional theory of forming and sustaining trust in monetary systems. To gain support for their trust in money, economic agents create hierarchically ordered structures of institutional insurance, which reflect the relative liquidity/enforceability of the monetary obligations taken by the parties to economic exchange. These layered structures of attendant institutions, however, fail to perform their supposed function of substantiating trust in money due to the problems of infinite regress, lack of the guarantor of last resort and uncontrollability of complex monetary systems. The paper discusses the implications of this institutional failure for developing trust in the liquidity, stability and acceptability of money in its different forms and contexts of circulation.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=F86N146555115428
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by M.E. Sharpe, Inc. in its journal Journal of Economic Issues.

    Volume (Year): 46 (2012)
    Issue (Month): 1 (March)
    Pages: 75-100

    as in new window
    Handle: RePEc:mes:jeciss:v:46:y:2012:i:1:p:75-100

    Contact details of provider:
    Web page: http://www.mesharpe.com/mall/results1.asp?acr=jei

    Related research

    Keywords: hierarchies; institutional systems; money; trust;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:mes:jeciss:v:46:y:2012:i:1:p:75-100. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ian Winship) or (Chris Nguyen).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.