Virtuous cycles of trust and confidence can be reinforced by stable institutions.

Evidence

A conceptual distinction, of course, is not yet an empirical theory. We need, in addition, to construct hypotheses about, and conduct research into, those special conditions in particular systems which may interrupt such a vicious circle of losing trust by losing confidence by losing trust by losing confidence. The economy, for example, may enjoy periods in which it is possible to have reasonable trust: in investment, and stable political conditions may assist in this. Results may then strengthen confidence in monetary stability — that is, in the system. The law may protect civil rights, freedom, and property even in the face of political opportunity. Thereby, it may create a confidence in the legal system and in positions of security which then makes it easier to place trust in other relations. — Diego Gambetta, Trust - Making and Breaking Cooperative…, 1442

Categorization

• XREF: connects to: Established regimes persist because compliance incentives and vested interests accrue over time — Robert B. McCalla, NATO’s persistence after the cold war, 114