ABSTRACT
This chapter focuses on the concept of the Credibility Trap that indicates a consequence of devastated society-specific culture, in particular, a consequence of liquidation and degeneration of the mutual trust among social constituents as well as of the centripetal force of society. The Credibility Trap refers to the socioeconomic state that dwarfs the Keynesian Liquidity Trap, despite the similarity of expressions. The chapter discusses the relevance of the Credibility Trap to modern colonialism and the consequential degradation or underdevelopment of many colonized societies. Further, the Credibility Trap will be attributed to the market fundamentalism that has devastated the diverse society-specific cultures in our contemporary world. The chapter also discusses a few examples that represent the lack of mutual trust in the economic domain. The economic globalization has led many a society to a prolonged severe malady, characteristic of the Credibility Trap that may usually refer to the state of persistent socioeconomic and human underdevelopment.
