Understanding the diversity of CCs worldwide in globalization and deindustrialisation as an evolutionary tree diagram

Makoto Nishibe

Senshu University, School of Economics – Email: nishibe@isc.senshu-u.ac.jp

The main purpose of the paper is to explain why vast diversity of community currencies (CCs) arise both within “developed countries” and between “developed” and “developing” countries, and to provide an evolutionary tree diagram, rather than taxonomy, of CCs that continue to vary in globalization and deindustrialization as two long-term socioeconomic tendencies since the 1970s. To accomplish the end, we explain that globalization and deindustrialization in modern capitalist economy caused various economic, social and cultural problems and CCs were introduced to solve the problems caused by the tendencies, and that such diversity of the problems brought about the diversity of CCs as solutions for them, and we presume that, according to ‘reality oriented categorization,’ such diversity of CCs is described in a tree diagram with such two underling dimensions corresponding to the two socioeconomic tendencies as: x) economic and/or social-cultural media as two basic components of CCs in globalization and y) primary and secondary and/or tertiary industry regarding deindustrialization. Thus the initial archetype of the tree diagram is identified as “industrializing- economic/complementary” CCs seen in the past developed countries and the present developing countries that evolved into three branches of CCs (“industrializing-local/territorial”, “deindustrializing-cultural/community” and “deindustrializing-economic/complementary”). Finally, we take up Banco Palmas in Brazil to examine if it can be regarded as the typical case of an industrializing-economic/complementary CC in developing countries in the tree diagram of CCs and suggest implications for CCs in the future.

Article Nishibe

To cite this article:

Makoto Nishibe (2018) ‘Understanding the diversity of CCS world-wide in globalization and deindustrialization as an evolutionary tree diagram’ International Journal of Community Currency Research 2018 Volume 22 (Winter) 16-36 <www.ijccr.net> ISSN 1325-9547.  DOI: http://dx.doi.org/10.15133/j.ijccr.2018.003

Classifying non-bank currency systems using web data

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.

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.

Keywords

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

Article Tichit pdf

To cite this article: Tichit, A., Mathonnat, C.,  and 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

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

Abstract

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.

Keywords

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

Article kavcic pdf

To cite this article: 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.

Abstract

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.

Keywords

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

Abstract

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.

Keywords

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

First Micro-Simulation Model of a LEDDA Community Currency-Dollar Economy

Results are presented for a first-in-class microsimulation model of a local-national currency system. The agent-based, stock-flow consistent model uses US Census income data as a starting point to project the evolution of local currency (community currency) and dollar flows within a simplified county-level economy over a period of 28 years. Changes in the distribution of family income are tracked. The community currency system under investigation is the Token Exchange System (TES), a component of the larger Local Economic Direct Democracy Association (LEDDA) framework under development by the Principled Societies Project. The model captures key design features of a TES, and results suggest parameter ranges under which the simulated TES is capable of achieving stated aims. Median and mean take-home family income more than double during the simulation period, income inequality is nearly eliminated, and the un- employment rate drops to a 1 percent structural level. The need for more sophisticated modeling of a TES, and avenues of future research, are discussed.

John Boik

To cite this article: Boik, J. (2014) ‘First Micro-Simulation Model of a LEDDA Community Currency-Dollar Economy’ International Journal of Community Currency Research 18 (A) 11-29 <www.ijccr.net> ISSN 1325-9547 http://dx.doi.org/10.15133/j.ijccr.2014.002

IJCCR 2014 Boik

Appendix

Complementary currency and its impact on the economy

Green-EconomyThe paper aims to show the impact that a complementary currency may have on a national economy from a theoretical point of view. A system dynamics model is created to describe the mechanics of money issuance in capitalist economies as well as in economies where there is no inside money. As an example, the first outcomes of a barter network implemented in 2008 by the STRO foundation in El Salvador (called Punto Transacciones) are presented and analyzed. Finally, using data from a complementary currency experience in El Salvador the spending multiplier is calculated. The main result shows that there is a greater spending multiplier in digital community currencies systems than in regular money market. Although the magnitude of PT network is still negligible from a macroeconomic point of view, the result is a desired outcome which may help to cushion the impact of macroeconomic shocks on labour market, contributing to stabilize aggregate demand.

Octavio Groppa

To cite this article: Groppa, O. (2013) ‘Complementary currency and its impact on the economy’ International Journal of Community Currency Research 17 (A) 45 – 57  <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2013.005

IJCCR 2013 Groppa

Taking Moneyless Exchange to Scale: Measuring and Maintaining the Health of a Credit Clearing System

Every day brings reports of new financial crises and financial malfeasance within the banking and financial establishment. In an effort to keep the banking system functioning, the largest banks and financial institutions have been relieved by national governments of tremendous amounts of their bad debts, shifting that burden onto the shoulders of the citizenry. At the same time, governments are imposing austerity upon their citizens in order to reduce the extremity of their budget shortfalls. Clearly, the global system of money and finance contains structural flaws that must be recognized and transcended. Reform is very unlikely to come in time to avert widespread social, political, economic, and environmental disasters. That leaves it to citizens, businesses, and communities to take action on their own behalf to ameliorate the negative effects of the failing system. Parallel systems of exchange and finance are both necessary, and easily implemented at the local and regional level. The most effective approach is the process of direct clearing of credits amongst buyers and sellers. This credit clearing process, which is being used in such systems as LETS and commercial trade exchanges, enables the creation of local liquidity based on local production, avoiding the use of conventional money and bank borrowing and moving local economies toward resilience, independence, and sustainability. The focus of this article is on credit clearing as a local exchange option, and deals specifically with the proper allocation of credit within credit clearing exchanges. It explains the causes of (1) the “pooling” of credits, (2) stagnation of circulation, and (3) failure to thrive, it prescribes policies to be applied in credit allocation, and it describes metrics that are important in assessing the performance of individual member accounts and in monitoring the overall health of a credit clearing system. Further, it explains the distinction between private credit and collective credit and the role of each in facilitating moneyless exchange, and recommends procedures for preventing excessive negative and positive balances while enabling both saving and investment within the system.

T. H. Greco Jr.

To cite this article: Greco, T. (2013) ‘Taking Moneyless Exchange to Scale: Measuring and Maintaining the Health of a Credit Clearing System’ International Journal of Community Currency Research 17 (A) 19-25  <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2013.003

IJCCR 2013 Greco

Improving Complementary Currency Interchange By A Regional Hub-Solution

Groups involved in complementary currencies (CC’s) that push for an interchange between their member-currencies are not yet a favourite subject in the existing CC-grassroots movement. One reason could be the existing doubts of activists that such structures might be non-transparent, support instability, raise corruption or be a gate for the comeback of the ruling system of limitless inequality. On the other side, an interchange could open bigger markets, add more diversity or raise the number of participants above a critical number for long term survival. The authors present the case of the region of Zurich, Switzerland, where a council of different CC-organizations was founded. As a result a new software platform cc-hub was developed to bundle regional LET systems. The platform is based on the open source Online Banking software, Cyclos, and covers many possible needs of a regionally or purpose-linked network of CC’s. It is able to support interchange, improve the efficiency of clearing and help to build up the necessary resilience for long term stability. It could serve as a model for cooperation between small neighbouring CC’s, for organizational improvement and additional economical benefit. But to verify such benefits will be a subject of further research.

Lucas Huber and Jens Martignoni

 

To cite this article: Huber, L. and Martignoni, J. (2013) ‘Improving Complementary Currency Interchange By A Regional Hub-Solution’ International Journal of Community Currency Research 17 (A) 1-7  <www.ijccr.net>  ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2013.001

IJCCR 2013 Huber Martignoni

Are Alternative Currencies A Substitute Or A Complement To Fiat Money? Evidence From Cross-Country Data

This paper studies the determinants of the usage of alternative currencies (currencies which exists parallel to the national currency of a country) across countries. We find that monetary stability, financial sector development and a country’s general level of economic development are all positively related to both the likelihood of a country hosting an alternative currency as well to the number of alternative currencies a country is hosting. This suggests that these currencies, in contrast to their historical function, mainly act as a complement to fiat money. We discuss the implications for the role of fiat money in the economy as well as for the welfare effects of alternative currencies.

Damjan Pfajfar, Giovanni Sgro, and Wolf Wagner

To cite this article: Pfajfar, D., Sgro, G. and Wagner, W. (2012) ‘Are Alternative Currencies or a Complement to Fiat Money? Evidence from Cross-Country Data’ International Journal of Community Currency Research 16 (D) 45 – 56  <www.ijccr.netISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2012.004

IJCCR 2012 Pfajfar et al

Exploring Gender Divisions In A Community Currency System: The Case Of The Barter Network In Argentina

This article aims to explore the ways in which Community Currency Schemes (CCS), as markets, are permeated by other influential social orders, in this case that of gender. The paper therefore looks at the way in which gender structures may be reproduced or reflected in these kinds of markets and how they sometimes acquire certain features depending on the CCS in question. The paper is based on a particular case study, the Argentine experience with a CCS – known as the ‘Barter Network’ – and is structured around three main issues. The first analytical section deals with a characteristic of the Barter Network shared by many other CCS: the preponderance of female (or the scarcity of male) participants. Thus, the reasons for the gender composition of the Barter Network are examined. The second section explores the way in which, through its development, this CCS generated its own gendered structures. Hence, the dynamics of certain trade practices which imply differential returns for men and women are examined. Finally, the article considers the degree of empowerment that participation in this sphere may have implied for female participants.

Francisca Pereyra Volume 11(2007) A98-111

IJCCR vol 11 (2007) 5 Pereyra

To cite this article: Pereyra, F. (2007) ‘Exploring Gender Divisions In A Community Currency System: The Case Of The Barter Network In Argentina’ International Journal of Community Currency Research 11 98-111 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2007.006

Development at the Conjuncture of Feminism and Associationalism

This article looks at whether or not Community Currency Systems form part of an alternative development agenda when analyzed through the lenses of feminism and associationalism. It begins by differentiating Alternative Development, as a static concept, from alternative development which is only comprehensible in its current context and form. The latter, according to the author, must involve a process of self-empowerment, a deepening of democracy and embody strong sustainability. A case study is provided of Thailand’s first CCS, Bia Kud Chum, and its encounter with state authorities. Using this example, it is shown that CCS and feminism share a recognition of the shortcomings of economic dualism and the desire to re-structure market values. Risks from this vantage point include the creation of new gender-biased institutions and an increase in women’s double burden. The associationalist analysis of CCS highlights the system’s capacity to serve as a vehicle for decentralization and potential in building networks central to economic success. However CCS proponents must be wary of co-optation into a programme which threatens the redistributive role of the state in the South. In the conclusion, it is argued that the Bia Kud Chum system was able to initiate a process of self-empowerment and encourage a deepening of democracy, and should, therefore, be considered part of an alternative development agenda.

Jeff Powell Volume 6(2002) 1

IJCCR Vol 6 (2002) 1 Powell

To cite this article: Powell, J. (2002) ‘Development at the Conjuncture of Feminism and Associationalism’ International Journal of Community Currency Research 6 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2002.004