Economic distrust leads to global financial crises.
The article discusses how economic crises can be caused by distrust. It looks at examples from China, Chile, Sweden, and the US to understand the impact of financial market turmoil and government policy mistakes. The researchers explore the consequences of housing bubbles and credit crises on global economies. They also examine the lessons learned from past economic meltdowns, like Japan's Lost Decade. The study sheds light on the role of credit default swaps in financial instability.