Understanding the Importance of Trust in an Economy, Both Today and Over History - Harold James

The video discusses the critical role of trust in financial markets and economic processes, emphasizing that trust is not well understood. It explores historical contexts, such as the Middle Ages, where trust enabled risky ventures across large distances. The video examines how merchants trusted others in different jurisdictions despite potential risks. It concludes by highlighting trust as a fundamental element for meaningful interaction, societal function, and political order, suggesting that economists and social scientists should study the basis of trust.

Why is it important for economists and social scientists to study the basis of trust?

What are the implications of lacking trust in society and political order?