We Want Confidence: But In what?

Nick Rowe:

Worthwhile Canadian Initiative: Confidence: In what?: It's a very old argument, and there's some truth in it. Financial crises and recessions are caused by a loss of confidence. And policies that might normally help end the recession might actually make things worse, if they worsen confidence.

Confidence in what? The problem right now is that there is too much confidence: in money, and perhaps in government bonds too. And too little confidence in real investment...