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.
Cooperation, interchange or intertrade of complementary currencies is not yet very common, perhaps of because the funding impulse of most complementary currencies does not cover the question of interchange and cooperation yet, or because theoretical aspects are not often stud- ied. The article describes money or currency as an instrument of cooperation, based on a socio- logical and institutional economics background. It then postulates currency as an operating system and focuses on the technical terms of trade if one would try to establish cooperation between such systems. Basic principles of interchange and intertrade, which are necessary for success, are presented, such as the ideas of trade balance, compensation funds, exchange rates and clearing, set-points and limits, references, anchoring money and tolls and taxes. Further some aspects of governance and negotiation are discussed and a nested framework of rules is adapted to currencies. As an Appendix a case study of the Zurich region is presented where a process of negotiation and building of an interchange network between several CC-groups is on-going.
To cite this article: Martignoni, J., (2015) ‘Cooperation and Intertrade between Community Currencies : From fundamentals to rule-making and clearing systems, including a case study of the Zurich Area, Switzer- land’ International Journal of Community Currency Research 19 (Summer) 137-151 <www.ijccr.net> ISSN 1325-9547 http://dx.doi.org/10.15133/j.ijccr.2015.014
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