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**
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 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.
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.net> ISSN 1325-9547 http://dx.doi.org/10.15133/j.ijccr.2012.004
This paper introduces the concept of social support as a social effect of community currencies and explores different ways of measuring it. We used a questionnaire survey and social network analysis of transactional records to conduct a comparative case study of two community currency organizations: Ichi-Muraoka in Japan and Bytesring Stockholm (BYTS) in Sweden. Our analysis yielded the following results with respect to social support provided by community currencies: (1) while the transfer of social support by community currencies does not affect the quality of life of all users in a significant way, it makes users aware that social support can be part of their lives if they become conscious of it; and (2) community currencies are peripheral and supplementary support sources for many local residents. These results show that community currencies are effective as a system to provide social support to local residents.
Hiromi Nakazato and Takeshi Hiramoto
To cite this article: Nakazato, H. and Hiramoto, T. (2012) ‘An Empirical Study of the Social Effects of Community Currencies’ International Journal of Community Currency Research 16 (D) 124-135 <www.ijccr.net> ISSN 1325-9547 http://dx.doi.org/10.15133/j.ijccr.2012.019
This paper compares two of the most successful community currency systems in the province of Quebec, Canada: l’Accorderie and Le Jardin d’Echange Universel (JEU). The paper compares their founding principles and organisational structures, and their mechanisms and mediums of exchange. While the former is quite well-institutionalised and attempts to operate professionally, ‘within the system’, the latter is a volunteer-run initiative with more ambiguous status. The paper attempts to evalute their impacts, where data is available, and concludes that while both exchange systems have their pros and cons, a definite advantage for l’Accorderie is that its legal status gives them better access to funding which ultimately permits them to offer their members the means by which to form an economic strategy in both the informal economy, through exchanges, and in the formal economy, through microcredit and participating in the monthly buyer’s group. This is particularly important to its poorer members where every dollar saved by making local exchanges can be used to improve their material well-being in the formal economy.
Mathieu Lizotte and Gérard Duhaime Volume 15(2011) Special Issue D47-51
To cite this article: Lizotte, M. and Duhaime, G. (2011) ‘L’Accorderie and Le Jardin Universel (JEU) in Quebec’ International Journal of Community Currency Research 15 (D) 47-51 <www.ijccr.net> ISSN 1325-9547 http://dx.doi.org/10.15133/j.ijccr.2011.020
A comparative analysis of LETS and Time Dollars seeks to identify their distinctive strengths and shortcomings, makes a plea for collaboration. The piece argues that most of the differences stem from their purpose: LETS is seeking to create an alternative economy to market; Time Dollars are seeking to rebuild what is termed the Core Economy, rooted in family, extended family, neighbors and civil society. While both seek to build community and counter the external costs of the global economy, LETS seeks to do so by returning the world of commerce to a local basis, while Time Dollars expressly seeks to do so by rebuilding the Core Economy, purged of the elements of subordination, discrimination and exploitation that characterized the functioning of that economy in the past. Both have important contributions to make and the challenge is to make sure that future relationships are in cooperation rather than competition.