John Maynard Keynes and the Economy of Trust : The Relevance of the Keynesian Social Thought in a Global Society

a 'pondered' attitude, for it is rather an irrational reaction to the crisis in the attempt of sheltering ourselves from an event that touches us as individuals, families and enterprises. To fully understand the meaning of confidence, we need to have an indestructible certainty of what is our future. The most beautiful and significant example I know of is the story of Florentino Ariza in Gabriel Garcia Marquez's masterpiece 'Love in the Time of Cholera' . It is a story which lasts 53 years, 7 months and 11 days (nights included) and in this long period the main character never stops believing that sooner or later he will achieve his objective. It is a sociological work capable of explaining better than anything else what is the confidence in life of a common person. Coming back to the topic of this Preface, to rediscover Lord John Maynard Keynes is an act of courage, as is also the comeback of Keynesian policies. Let me try and explain. Keynes hated revolutionaries and he did not love reactionaries. He was far from thinking that the optimism of the former, who believed in a radical turning upside down of the system, would have prevailed; but he equally refused the pessimism of the latter, for they wanted to keep the status quo, in their opinion too dangerous to change or simply affect in any way. In our times much caution is required to place oneself in the middle. In times in which the adoration for GDP and development models based on the wildest neoliberal policies prevail, to attempt the introduction of restrictions is an operation of great economic, political and cultural relevance. In the fight between State and market, the market has won by far to the detriment of any State intervention with the aim of reducing social differences. Today Keynes is out of standard. In other words, he is out of fashion. I imagine that a man like him would be very disappointed to discover that his teachings have been so short-lived. From this point of view, the battle over the resistance of the various development models has been won by Adam Smith. Development at all cost is based on the policies encouraged by the so-called 'animal spirits' instead of on the introduction of precise rules to regulate offer and demand. The idea of freedom has widely trespassed that of responsibility, now little considered and respected. 'Yet, freedom -writes Padua [see Concluding Remarks] -lives, thanks to its opposition to the concept of constraint and restriction. ' The Rhenish model of capitalism, attentive to the distribution of wealth, has given x Why does trust collapse in times of crisis? And when, instead, does it become a driver of growth, generating value? Through a sociological interpretation of the thought of John Maynard Keynes, Padua introduces the innovative concepts of Economy of Trust and Nominal Economy within the context of the 2008 financial crisis. Why does trust collapse in times of crisis? And when, instead, does it become a driver of growth, generating value? This book offers an analysis of the dynamics of trust through a sociological interpretation of the thought of John Maynard Keynes, the first economist to understand the full extent of the confidence-lever. In the context of the 2007 crisis and following recession, the innovative concept of Economy of Trust explains how trust spontaneously replaces the weakened institutional system of quality assurance and control and generates value. Indeed, the deficiency of such a system has become the ideal breeding ground for the growth of the unethical speculative Nominal Economy. Within this context, only targeted policies of Economy of Trust can funnel the 'store of value' effect generated by trust towards positive intents of building social capital. Indeed, always taking in consideration the irrational aspect of human action as identified in a revolutionary way by John Maynard Keynes "Why does trust collapse in times of crisis? And when, instead, does it become a driver of growth, generating value? This book offers an analysis of the dynamics of trust through a sociological interpretation of the thought of John Maynard Keynes, the first economist to understand the full extent of the confidence-lever. In the context of the 2007 crisis and following recession, the innovative concept of Economy of Trust explains how trust spontaneously replaces the weakened institutional system of quality assurance and control and generates value. Indeed, the deficiency of such a system has become the ideal breeding ground for the growth of the Nominal Economy: the economy that distorts the perception of reality as it widens economic and social disparities, unbalances relationships between risk and wealth in the global society and dissolves the bonds of responsibility. In this way, trust is channeled towards strong "new powers", such as hedge funds companies, rating agencies and investment banks. Within this context, only targeted policies of Economy of Trust can funnel the 'store of value' effect generated by trust towards positive intents of building social capital."-- Provided by publisher Padua has asked the question" How is it possible to build value via trust? She has answered through the construction of a compelling argument for the creation of a balanced global economy and a fairer distribution of wealth based upon that elusive quality of trust. Garry Titterton, former Visiting Professor, Executive MBA Course, Tonjin University, Shanghai, Co-author Brand Storming, and reviewer for Palgrave McMillan, Business Management Front Matter....Pages i-xiv Introduction....Pages 1-5 Complexity....Pages 6-32 Trust....Pages 33-62 Value....Pages 63-87 Trust, Growth, Development....Pages 88-102 Concluding Remarks: The Economy of Trust Generates Value....Pages 103-113 Back Matter....Pages 114-121