Vol. 20 (Summer) pp. 41-53

The “commodity – money – commodity” Mutual Credit Complementary Currency System. Marxian money to promote community trade and market economy

Samo Kavčič

Šercerjeva ul.26, 4240 Radovljica, Slovenia. E-mail: kavcic917@gmail.com


The Mutual Credit Currency System, this most radical form of endogenous money, was evaluated and compared with Marx’s Commodity-Money-Commodity requirement.  A simple simulation of a small community closed loop economy was used to illustrate the functioning of two types of mutual credit currency systems. The first, dubbed MCSG, behaved according to the specifications and recommendations of the mutual credit currency system’s founding fathers, Riegel and Greco. The second, dubbed the Komoko Monetary System, or abbreviated to KMS, was a sub-type of the mutual credit currency system with some additional restrictions and one additional liberty. The main restriction introduced in the KMS was that it almost exclusively supported the exchange of only newly produced goods and services. The liberty introduced is forecast-based credit allocation. It was shown that the MCSG has an inconsistency that could potentially lead to instability. The restrictions applied within the KMS can provide a remedy for this potential flaw, while at the same time rendering the KMS compliant with Marx’s requirement. The monetary control measures applicable in KMS were discussed, which guarantee robustness and stability and make KMS a true complement to the official fractional reserve banking.


Mutual credit system , Commodity – money – commodity, Cash flow forecast, Currency circuit,  Monetary control,  Endogenous money

Article kavcic pdf

To cite this article: Kavčič, S. (2016) ‘The “commodity – money – commodity” Mutual Credit Complementary Currency System. Marxian money to promote community trade and market economy’ International Journal of Community Currency Research 20 (Summer) 41-53 <www.ijccr.net> ISSN 1325-9547  http://dx.doi.org/10.15133/j.ijccr.2016.003

Vol. 20 (Summer) pp. 24-40

Classifying non-bank currency systems using web data

Ariane Tichit*, Clément Mathonnat*, Diego Landivar**

* Clermont University, Auvergne University, CNRS, UMR 6587, CERDI, F-63009 Clermont Fd. Email: ariane.tichit@udamail.f; Clement.MATHONNAT@udamail.fr; ** ESC Clermont, 63000 Clermont-Fd. Email: diego.landivar@france-bs.com.


This paper develops a new classification of non-bank currency systems based on a lexical analysis from French-language web data in order to derive an endogenous typology of monetary projects, based on how these currencies are depicted on the internet. The advantage of this method is that it by-passes problematic issues currently found in the literature to uncover a clear classification of non-bank currency systems from exogenous elements. Our textual corpus consists of 320 web pages, corresponding to 1,210 text pages. We first apply a downward hierarchical clustering method to our data, which enables us to endogenously derive five different classes and make distinctions among non-bank currency system and between these and the standard monetary system. Next, we perform a similarity analysis. Our results show that all non-bank currency systems define themselves in relation to the standard monetary system, with the exception of Local Exchange Trading Systems.


non-bank money, text mining, web data, downward hierarchical clustering, similarity analysis

Article Tichit pdf

To cite this article: Tichit, A.; Mathonnat, C.; Landivar, D. (2016) ‘Classifying non-bank currency systems using web data’ International Journal of Community Currency Research 20 (Summer) 24-40 <www.ijccr.net> ISSN 1325-9547 http://dx.doi.org/10.15133/j.ijccr.2016.002

Vol 20 (Summer) pp. 2-23

Psychological factors influencing the use and development of Complementary Currencies

Carmen Smith, Alan Lewis

University of Bath, Claverton Down, Bath, BA27AY, United Kingdom, Email: C.J.Smith@bath.ac.uk; A.Lewis@bath.ac.uk


This paper presents a novel socio-psychological analysis of the motivations and experiences of mutual credit members in the United Kingdom and in the United States. Primary data comprised of interviews and participant observation, supplemented with secondary data analysis of organisation documents, and a review of the literature in psychology, sociology and economics. Group members were motivated to secure personal resilience against hardship, and the personal agency that results from this, along with the experiences of community and cultural identity positioning, motivates engagement. Consequently these groups are defined as cultural communities offering personal resilience to members through informal reciprocity. This approach, which prioritises the social aspects of exchange, has implications for the design of complementary currencies, particularly mutual credit initiatives, and demonstrates the value of engaging with the fields of psychology and sociology in developing interdisciplinary understandings of alternative economic practice.


Complementary currency, mutual credit, sustainability, reciprocity, resilience, community

Article Smith pdf

To cite this article: Smith, C; Lewis, A. (2016) ‘Psychological factors influencing the use and development of Complementary Currencies’ International Journal of Community Currency Research 20 (Summer) 2-23 <www.ijccr.net> ISSN 1325-9547 http://dx.doi.org/10.15133/j.ijccr.2016.001

How Green is Our Money? Mapping the Relationship between Monetary Systems and the Environment

The causal link between economic growth and environmental degradation has received much attention in recent social science literature(s). Although such studies have generated key insights, the role of monetary systems – as central components of all modern economies – has been almost completely overlooked. This papers argue that monetary systems affect natural environments through the economic activities that particular monetary systems promote. It focuses on two specific aspects of any monetary system: governance and scale. With respect to the former, it shows how the rules that govern monetary systems can promote economic practices with environmental implications. With respect to the latter, the paper shows how the scale at which money is issued and/or circulates affects patterns and intensities of economic activity, both of which have clear environmental consequences. A corollary of the argument is that changing the governance and scale of monetary systems can alter economic activity in environmentally-harmful or -helpful ways.

Skylar Brooks

IJCCR 2015 Brooks

To cite this article: Brooks, S. (2015) ‘How Green is Our Money? Mapping the Relationship between Monetary Systems and the Environment’ International Journal of Community Currency Research 19 (Winter) 12-18 <www.ijccr.net> ISSN 1325-9547 http://dx.doi.org/10.15133/j.ijccr.2015.018

Prices in parallel currency: The case of the exchange network of Chania, Crete

This paper investigates the prices set within the Exchange Network of Chania and tries to examine what prices are attributed to which products and services, how those prices are set and what they reveal about the values of the goods offered. Moreover, the further aim of the paper is to explore the implications of those prices concerning the function of the scheme itself, within the context of the local economy of the Chania area. The data have been gathered during regular visits to the open markets of the scheme since January 2012. Therefore, the paper attempts to contribute original research findings concerning prices in parallel currency schemes and study several important issues which arise in multiple currency practice.

Irene Sotiropoulou

IJCCR 2015 Sotiropolou

To cite this article: Sotiropoulou, I. (2015) ‘Prices in parallel currency: The case of the exchange network of Chania, Crete’ International Journal of Community Currency Research 19 (Summer) 128-136 <www.ijccr.net> ISSN 1325-9547 http://dx.doi.org/10.15133/j.ijccr.2015.013

2015 Special Issue: Multiple Moneys and Development

Papers available individually on the website, or you can download the entire IJCCR 2015 Special Issue here (36MB).

Editorial Introduction: Money and Development   Georgina Gómez D1-5
The socio-economics of community currency systems
Territorial development and Community currencies : symbolic meanings in Brazilian Community development banks Marie Fare, Carlos de Freitas and Camille Meyer D6-17
Complementary Currencies for Sustainable Development in Kenya: The Case of the Bangla-Pesa William O. Ruddick, Morgan A. Richards, and Jem Bendell D18-30
Virtual social currencies for unemployed people: social networks and job market access Maëlle Della Peruta  and Dominique Torre D31-41
Price Setting Mechanisms in Complementary Currencies in Argentina’s Redes de Trueque  Georgina Gómez D42-52
What kinds of volunteer become more motivated by community currency? Influence of perceptions of reward on motivation Ken-ichi Kurita , Masayuki Yoshida and Yoshihisa Miyazaki D53-61
Building trust: exploring the role of community exchange and reputation Robin Krabbe D62-71
Community Currency in Korea: How do we envision community currency? Joonmo Kang and Baeg Eui Hong D72-80
Beyond growth: problematic relationships between the financial crisis, care and public economies, and alternative currencies Maurizio Ruzzene D81-93
Comparative work on community currency systems
French complementary currency systems: exploring contributions to promote social currency in Argentina Ricardo Orzi D94-105
The Financing of Complementary Currencies: Problems and Perspectives Rolf. F. H. Schroeder D106-113
On Velocity in Several Complementary Currencies Josep Lluis de la Rosa and James Stodder D114-127
Prices in Parallel Currency: the case of the Exchange Network of Chania, Crete Irene Sotiropoulou D128-136
Cooperation and Intertrade between Community Currencies : From fundamentals to rule-making and clearing systems, including a case study of the Zurich Area, Switzerland Jens Martignoni D137-151
Validating and improving the Impact of Complementary Currency Systems through impact assessment frameworks Christophe Place and Leander Bindewald D152-164
It’s the motivation, stupid! The influence of motivation of secondary currency initiators on the currencies’ success Lukas Fesenfeld, Jan Stuckatz, Iona Summerson, Thomas Kiesgen, Daniela Ruß, Maja Klimaschewski D165-172

It’s the motivation, stupid! The influence of motivation of secondary currency initiators on the currencies’ success

This paper attempts to explain the success of secondary currencies. Success is defined as the degree to which the initiators of these currencies manage to reach their original goals. In order to do so, we draw on two explanatory factors:  the motivation of a currency’s founder and the degree of organization. We employed a combination of qualitative interviews, secondary literature review and standardized questionnaires with seven secondary currency projects in Croatia (CROM), Germany (KannWas, Engelgeld), Greece (Ovolos, TEM) and the United Kingdom (Bristol Pound, Brixton Pound). The main findings are that projects which pursue several different motivations are more successful than those with fewer goals. As for the degree of organization, projects which score high on all dimensions of organization are correlated with higher project success. Building on this we propose a typology of two groups: Type 1 cases have low diversity of motivation and organization (CROM and Engelgeld) and Type 2 cases have high diversity of motivation and organization (Bristol Pound, Brixton Pound, and TEM). The two remaining cases, the Ovolos and the KannWas cannot be clearly assigned to any of the types. The motivation-organization typology can guide future research on the motivation of founding and using secondary currencies.

Lukas Fesenfeld, Jan Stuckatz, Iona Summerson, Thomas Kiesgen, Daniela Ruß, Maja Klimaschewski

IJCCR 2015 fesenfeld

To cite this article: Fesenfeld, L., Stuckatz, J., Summerson, I., Kiesgen, T., Ruß, D. and Klimaschewski, M. (2015) ‘It’s the motivation, stupid! The influence of motivation of secondary currency initiators on the currencies’ success’ International Journal of Community Currency Research 19 (Summer) 165-172  <www.ijccr.net>  ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2015.016