IDEAS home Printed from https://ideas.repec.org/a/mes/jeciss/v46y2012i1p75-100.html
   My bibliography  Save this article

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

Author

Listed:
  • Alexander Lascaux

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.

Suggested Citation

  • Alexander Lascaux, 2012. "Money, Trust and Hierarchies: Understanding the Foundations for Placing Confidence in Complex Economic Institutions," Journal of Economic Issues, Taylor & Francis Journals, vol. 46(1), pages 75-100.
    • Handle: RePEc:mes:jeciss:v:46:y:2012:i:1:p:75-100
    DOI: 10.2753/JEI0021-3624460103
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2753/JEI0021-3624460103
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.2753/JEI0021-3624460103?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MJEI20 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.