Modern institutions include the World Trade Organisation and the concept of independent central banks. I like how Andy Haldane put it: “whether old or new, institutions seem to matter. Their secret lies in solving societal problems of knowledge, co-ordination and incentives. Institutional memory can help lengthen and strengthen otherwise short and subjective minds.
And institutional investment can help build public goods and flatten otherwise fat tails.”15 Trust and social capital One common thread that enables all institutions to work is trust. Without the trust of the public that it serves, an institution will struggle to function, to be effective, and, ultimately, to persist.