Argentina in the Red: What can the UK’s Regional Economies Learn from the Argentinian Banking Crisis?

This paper explores the growth of community currencies in Argentina following the financial collapse of 2001 and draws lessons for local economies in developed economies. The paper begins with a brief profile of the Argentinian economy, which is seen to be highly sophisticated and successful. The reasons for the banking crisis of 2001 are then explained, focusing especially on monetarist IMF policies and their disastrous effect on the real economy of Argentina. Information is then given about the nature of the Red Global de Trueque (global barter network), its link to the ecological movement, and its development into a fully fledged system of alternative currencies following the monetary crisis. Problems facing the system as it expanded, and its relationship with local political authorities, and their own alternative currencies are described. Links are then drawn between the problems facing the Argentinian economy in 2001 and those facing many local economies in the UK facing long-term recession, particularly in terms of low levels of monetisation and the low value of the local multiplier. The paper concludes that a local economy with a functioning currency under its control is in a strong position to withstand potential crises in the functioning of the global economy.

Molly Scott Cato Volume 10(2006) A43-55

IJCCR vol 10 (2006) 5 Scott Cato

To cite this article: Cato, M.S. (2006) ‘Argentina in the Red: What can the UK’s Regional Economies Learn from the Argentinian Banking Crisis?’ International Journal of Community Currency Research 10 43-55 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2006.006

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Reinventing the Market: Alternative Currencies and Community Development in Argentina

Up until now, the vast majority of research on community currencies has focused upon their development in advanced economies. The aim of this short article, however, is to present some evidence on the growth of community currencies outside these western advanced economies. Reporting on the Global Exchange Network in Argentina, this paper shows how in just five years, this has exploded from a neighbourhood group of 20 people to a national network of 500 groups with over 230,000 participants exchanging skills, knowledge, goods and services. In so doing, it shows how “multi-reciprocal exchange”, facilitated not by Argentine Pesos but an alternative local currency, is growing in popularity not only in ‘northern’ advanced economies but also ‘southern’ nations.

Stephen DeMeulenaere Volume 4(2000) 3

IJCCR Vol 4 (2000) 3 DeMeulenaere

To cite this article: DeMeulenaere, S. (2000) ‘Reinventing the Market: Alternative Currencies and Community Development in Argentina’ International Journal of Community Currency Research 4 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2000.004