Double Trust Reflection Theory (DTRT): An Evolved Keynesian Framework Integrating Bidirectional Trust Dynamics, Digital Governance, and Green Asset Recycling for Fiscal Sustainability

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Authors: Sara B
Cited by: 0

Abstract

In the context of a 2026 global economy marked by slowing growth (3.3%), public debt approaching 100 trillion USD and 95–100% of GDP, and a profound crisis of trust (Edelman Trust Barometer 2026), this paper proposes an evolved Keynesian framework that integrates mutual trust as a dynamic economic capital, AI-enhanced digital governance, green asset recycling, and adaptive fiscal mechanisms. Central to the model is the original Double Trust Reflection Theory (DTRT), which reconceptualizes bidirectional trust (citizen-to-state and state-to-citizen) as a productive input that directly influences monetary transmission, financial resilience, sovereign borrowing costs, and voluntary tax compliance. The framework rests on four operational pillars — Engine Financing, Green Social Transformation Fund, Transparency 2.0, and Structural Competitiveness — designed to stimulate high-multiplier demand, reduce structural deficits, and ensure long-term fiscal sustainability without excessive borrowing or coercive taxation. Through non-linear mathematical formalization and a controlled illustrative simulation (“Bitter Hydrogen” crisis), the model demonstrates how balanced mutual trust generates a virtuous cycle of sustainable growth, lower risk premia, and enhanced climate transition capacity, offering a structurally resilient alternative to traditional austerity and debt-dependent policies in an era of high volatility and declining institutional confidence.

Fields of Study & Subjects

Fiscal Policies and Political Economy Social Capital and Networks Economic Theory and Institutions

Publication details

Journal / source
Zenodo (CERN European Organization for Nuclear Research)
Publication date
7 February 2026