- List of Figures
- List of Tables
- Global Finance And Its Institutional Spaces
- Politics And Financial Markets
- Finance And Institutional Investors
- Business Groups And Financial Markets As Emergent Phenomena
- Central Banking And The Triumph Of Technical Rationality
- What is a financial market? Global markets as microinstitutional and post-traditional social forms
- Auctions And Finance
- Interactions And Decisions In Trading
- Traders And Market Morality
- The Material Sociology Of Arbitrage
- Seeing Through The Eyes Of Others: Dissonance Within And Across Trading Rooms
- Market Efficiency: A Sociological Perspective
- Financial Analysts
- Rating Agencies
- Accounting And Finance
- The International Monetary Regime And Domestic Political Economy: The Origin Of The Global Financial Crisis
- A Long Strange Trip: The State And Mortgage Securitization, 1968–2010
- Dead Pledges: Mortgaging Time And Space
- Financial Crises As Symbols And Rituals
- The Sociology Of Financial Fraud
- The Disunity Of Finance: Alternative Practices To Western Finance
- Islamic Banking And Finance: Alternative Or Façade?
- Geographies Of Finance: The State-Enterprise Clusters Of China
- The Financialization Of Art
- Historical Sociology Of Modern Finance
- Gender And Finance
- The Role Of Confidence In Finance
- Finance In Modern Economic Thought
- Financial Automation, Past, Present, And Future
Abstract and Keywords
Bankers and politicians have long known that confidence plays an important role in finance. Economists, in contrast, have been slow to realize this. As a result a strong tradition in the economics literature that discusses what confidence is and what role it plays does not exist. Sociology has for natural reasons had even less to say about the role of confidence in finance. Economic sociology has only been around for a few decades and has not produced very many studies of finance. This is true even if we take into account the work by sociologists who are active in the field known as the social studies of finance. This article first introduces the main attempts so far to deal with this topic, in economics as well as in sociology. It then considers the relationship between trust and confidence. It shows that there is no consensus either in economics or in sociology when it comes to what confidence is and what role it plays in finance; and such a consensus is not likely to emerge. What needs to be done is to try to push ahead theoretically, to advance beyond the current discussion by putting forth new ideas on this topic.
Richard Swedberg is Professor of Sociology at Cornell University. His two areas of specialization are economic sociology and social theory. His books include: The Handbook of Economic Sociology (edited with Neil Smelser, 1994, 2005), Max Weber and the Idea of Economic Sociology (1998), and Principles of Economic Sociology (2003). He is currently working on a study of Tocqueville and economics.
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