Excursus: Trust in money
Money is a social institution without which no complex economy with a division of labour would be possible. Money enables its owner to decide when and for what he/she wishes to exchange it. By offering freedom of choice, money reduces the complexity of economic processes for the individual. Niklas Luhmann, a sociologist, has pointed out that money can only fulfil this function if people place trust in it. According to Luhmann, this systemic trust differs from personal trust in that it is nearly impossible for individuals to find out whether their trust is justified. Systemic trust does not stem from an interactive process but rather from repeated confirmation experienced when using money. Once trust in money has proved to be justified, some form of certainty equivalent is created. Money then allows its owner to no longer worry about particular problems as money represents a general problem-solving means. In the event of uncertainty besetting the economic system, individuals may feel induced to hold more liquidity (certainty equivalents) and put consumption or investment on hold. However, uncertainty may also shake the general trust in money and thus trigger a flight to tangible assets. Once systemic trust is destroyed in such a way it can only be rebuilt with great difficulty given the individual's lack of control.
Luhmann, Niklas (2000), Vertrauen.
最終更新：2009年06月21日 00:25
