A comparison in transaction efficiency between dispersive and concentrated money creation

In this paper, we have compared concentrated creation of money with dispersive creation of money, and try to show, by using the results of computer simulation, the advantage of the method of dispersive money creation embodied into LETS in comparison with concentrated money creation. However, both ways of money creation have particular merits and demerits. We also estimate the effect of different rules for restricting the upper limits of debits of all participants in LETS on the rate of realized transactions in order to prevent free riding. First, we give an overview of LETS. Second, we show, using a computer simulation, the advantage of the method of dispersive money creation compared to concentrated money creation. Finally, we have demonstrated the validity of the ‘transaction indexation method’ to set the rules of determining the upper limit of debits in LETS to avoid free riding and to enhance transaction efficiency

Nozomi Kichiji and Makoto Nishibe

IJCCR 2012 Kichiji Nishibe

To cite this article: Kichiji, N. and Nishibe, M. (2012) ‘A comparison in transaction efficiency between dispersive and concentrated money creation’ International Journal of Community Currency Research 16 (D) 49-57 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2012.011

IJCCR 2012 Elvins

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Community Currencies as Integrative Communication Media for Evolutionist Institutional Design

The present article shows that community currencies (CCs) are interpreted as integrative communication media with dual aspects of money and language, and that, since money is the most indispensable medium of the modern capitalistic market economy, CCs should be strategic targets for evolutionist institutional design in order to solve current social and economic problems caused by global capitalism.

In order to theoretically view the bidirectional effects caused by alteration of money as a platform institution in its evolutionary perspective, we introduce some basic concepts such as replicators and interactors and illustrate the micro-meso-macro loop model by using those concepts. Then we elucidate the significance and possibility of evolutionist institutional design in policy applications of the theoretical ideas put forward. Lastly, we investigate why and how CCs can be strategic platform media in evolutionist institutional design.

Makoto Nishibe

To cite this article: Nishibe, M. (2012) ‘Community Currencies as Integrative Communication Media for Evolutionist Institutional Design’ International Journal of Community Currency Research 16 (D) 36-48  <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2012.010

IJCCR 2012 Nishibe

Tax Anticipation Scrip as a Form of Local Currency in the USA during the 1930s

During the world economic crisis of the 1930s, the United States experienced widespread use of local currency or “scrip”. The most significant form of scrip, both in terms of the longevity and size of the issues, was tax anticipation scrip. This article surveys the varieties of tax anticipation scrip issue during this period, and suggests some applications to non-crisis circumstances. After outlining the general experience with depression-era scrip, this article describes the nature and origins of tax anticipation scrip as a particular form of local currency. It also examines specific local arrangements that affected the successful circulation of such scrip. The American jurisprudence concerning non-national currency is assessed insofar as it puts into legal context scrip issued during the 1930s. The article concludes by relating the significance of the American experience of the 1930s to neo-chartalist interpretations of the origins and functions of money.

Loren Gatch

To cite this article: Gatch, L. (2012) ‘Tax Anticipation Scrip as a Form of Local Currency in the USA during the 1930s’ International Journal of Community Currency Research 16 (D) 22-35  <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2012.009

IJCCR 2012 Gatch

Selling Scrip to America: Ideology, Self-help and the experiments of the Great Depression

Although there was no single pattern to the use of alternative currency in America during the Great Depression, the arguments used by supporters of scrip often played on common themes.  Support for scrip reflected the belief that local resources could be marshaled to combat the economic situation.  Although the Depression was a national (and international) crisis, many scrip advocates believed that they would be able to focus improvement within one particular community.  Scrip appealed to American notions of self-help and individualism.  Even faced with the challenges of the Depression, few Americans were willing to embrace radical change.  Advocates of alternative currency had to walk a fine line between emphasizing the innovative possibilities of scrip and reassuring the public that these plans were simply a means to “prime the pump” of an essentially sound economic system.

Sarah Elvins

To cite this article: Elvins, S. (2012) ‘Selling Scrip To America: Ideology, Self-help and the Experiments of the Great Depression’ International Journal of Community Currency Research 16 (D) 14-21  <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2012.008

Democratizing Money: Historical Role of the U.S. Federal Government in Currency Creation

For two hundred and sixty years the US federal government has claimed that the most democratic money is a scarce form of money. This claim is built off the notion that an abundant supply of money would threaten class relations (the rights of private property) and ultimately the free flow of commerce (capitalist exchange). Since the writing of the federal constitution the government’s focus has always been on creating reliable and abundant supplies of credit. The idea of scarce money and abundant credit has been challenged twice: In the 1860’s by the Greenback Party who claimed the most democratic money is money created by government. The second challenge in the 1980s by the Community Currency movement uniquely focuses not on banks or government instead claiming that democratic money is money created by local communities and/or individuals.

Saul Wainwright

To cite this article: Wainwright, S. (2012) ‘Democratizing Money: The Historical Role of the U.S. Federal Government in Currency Creation’ International Journal of Community Currency Research 16 (D) 5-13  <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2012.007

IJCCR 2012 Wainwright