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2min chapter
Trust me, I’m an economist
The New Bazaar
The Relationship Between Contract Enforcement and Trust
In places with strong contracts, does that help or hurt the relationship between trust and growth? And we find that it generally helps, right? Placed with strong rule of law, which means strong contract enforcement, they actually have better growth and better trust. But too much is also a bad thing, yes? It can even undermine trust in some cases. Or if it's written correctly, with just enough room to be vulnerable and take some risk, it can enhance trust. Unambiguously exactly sucton.
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