The question raised in this article is whether the focus on “money”, as the key concept in the analysis of community or complementary currencies, is justified. The investigation shows that the economies which facilitate exchange with alternative currencies are also based on “capital.” In some cases, capital is created within a community or complementary currencies; in others, synergies exist between the alternative currencies and other ways of financing long-term assets like microfinancing schemes. In order to better understand the grey zones between these different spheres an all-encompassing use of the notion of “money” should be avoided.
To cite this article: Rolf E.F. Schroeder (2018) ‘Complementary Currencies and the Financing of Investments in Long-term Assets’ International Journal of Community Currency Research2018 Volume 22 (Winter) 4-14 <www.ijccr.net> ISSN 1325-9547. DOI: http://dx.doi.org/10.15133/j.ijccr.2018.002
Costs and cost coverage of complementary currencies has been neglected by researchers so far. This article provides an analysis of the different types of costs incurred and asks for appropriate means of financing such projects. External public and private sources are discussed in a critical manner. Self-financing appears to be a viable alternative; however, considering overall transaction costs, the burden to be carried by participants is considered to be a significant constraint with regard to this source. In the final part the question is discussed whether and how it can be possible to finance regional currencies that would have a significant economic impact. A scenario illustrates the potential of this feature with regard to the construction of new types of systems.
To cite this article: Schroeder, R. (2015) ‘The Financing of Complementary Currencies: Problems and Perspectives’ International Journal of Community Currency Research 19 (Summer) 106-113 <www.ijccr.net> ISSN 1325-9547 http://dx.doi.org/10.15133/j.ijccr.2015.011