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

Complementary Currency Open Source Software in 2010

This report briefly covers the field of non-commercial mutual credit software, discussing the issues and challenges the projects collectively faced in meeting the needs of the movement. There is a clear cultural divide between commercial barter software which helps businesses exchange spare capacity within the law, and free open source projects which help neighbours to exchange under the radar of the tax man. There is almost no cross-fertilisation between nonprofit, idealistic, community projects, and the business barter. The aims of both cultures are very different, though their methods are similar.

Matthew Slater Volume 15(2011) Special Issue D82-87

IJCCR 2011 Special Issue 16 Slater

To cite this article: Slater, M. (2011) ‘Complementary Currency Open Source Software in 2010’ International Journal of Community Currency Research 15 (D) 82-87 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2011.027

What Have Complementary Currencies in Japan Really Achieved?

Japan has been regarded from abroad as one of the most developed countries in terms of CC systems, depicted by Kennedy and Lietaer (2004) as “the country in the world with the most systems in operation today, but also the nation with the greatest diversity of such experiments.” However, this paper argues that the lack of literature about initiatives in languages other than Japanese has been a hurdle that has not allowed Western researchers to grasp the real picture.  This article’s goal is to show the historical development of CC initiatives in this East-Asian country, revealing how the very concept of having another means of exchange for communities has been transformed over years by the unique interpretations and the conceptual manipulation of Japanese promoters and practitioners.

Yasuyuki Hirota Volume 15(2011) Special Issue D22-26

IJCCR 2011 Special Issue 05 Hirota

To cite this article: Hirota, Y. (2011) ‘What Have Complementary Currencies in Japan Really Achieved?’ International Journal of Community Currency Research 15 (D) 22-26 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2011.016

On The Money: Getting the message out

Complementary and community currency systems have been started all over the world. There are a number of critical success factors, one of which is education. There are many important reasons for educating people about community currencies, including practical, economic, social, ecological, political and psychological ones. Key audiences for messages about community currencies are participants, designers, administrators and public decision makers. Promoters have adopted a range of strategies to educate people who design, use or support these systems: books & articles, design guides, research summaries, general advice & information, videos, conferences, webinars (internet seminars), internet discussion groups and training. More coordinated and strategic support of these efforts would enhance their effectiveness.

John Rogers Volume 15(2011) Special Issue D11-16

IJCCR 2011 Special Issue 03 Rogers

To cite this article: Rogers, J. (2011) ‘On The Money: Getting the message out’ International Journal of Community Currency Research 15 (D) 11-16 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2011.014

Classifying ‘CCs’: Community, Complementary and Local Currencies

Since the emergence of “CCs” thirty years ago, attempts to build typologies and to name things properly have always been disappointing, as if the very object of the analysis escaped from any rigid classification. Even the terms “complementary currency”, “community currency” and many others are not considered similarly; as a result, there is no common typology shared by scholars, activists and observers, beyond a series of general considerations clearly distinguishing specific items between CC schemes. This paper presents a novel attempt to classify and categorise CCs in a way which looks to future developments, while capturing the diversity of historical origins. The ideal types of community, complementary and local currencies let the possibility of combinations able to analyze concrete forms of non-national and not-for-profit currencies. The teleological exclusion of sovereignty and, more important, profit motives must be emphasized.  The present typology states that for-profit currencies are of another nature than CCs, and it draws up an ideal-type of CCs built around a democratic participation principle organized around non-profit organizations, grassroots organizations or informal groupings of persons.

Jérôme Blanc Volume 15(2011) Special Issue D4-10

IJCCR 2011 Special Issue 02 Blanc

To cite this article: Blanc, J. (2011) ‘Classifying ‘CCs’: Community, Complementary and Local Currencies’ International Journal of Community Currency Research 15 (D) 4-10 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2011.013

Calgary Dollars: Economic and Social Capital Benefits

The Calgary Dollars complementary currency, which began in 1996, contributes to the knowledge of complementary currencies through repeated measurement of social and economic capital outcomes. This brief article provides a literature review and references some relevant government endorsements of complementary currency including the City of Calgary and the Alberta provincial complementary currency of 1936. Summaries of demographics and participants quotations are provided. Calgary research findings from 2002/2003, 2009, and 2010 are reviewed. Economic capital benefits are found to include complementary currency purchases as well as national currency and barter transactions resulting from Calgary Dollars participation. The findings suggest that both social and economic capital benefits are realized by Calgary Dollars participants and that benefits increase with the length of participation.

 Gerald Wheatley, Corrine Younie, Hind Alajlan, and Erin McFarlane Vol 15(2011) A84-89
To cite this article: Wheatley, G.; Younie, C.; Alajlan, H. and McFarlane, E. (2011) ‘Calgary Dollars: Economic and Social Capital Benefits’ International Journal of Community Currency Research 15 (A) 84-89 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2011.009

Money and Participatory Governance: A review of the literature

This paper provides an overview and discussion of several important approaches to the governance of monetary systems in the light of the extent to which all stakeholders have full input into monetary decision-making processes.  Currency scale and various approaches to monetary governance are explored, identifying a number of key limitations with previous approaches and highlighting the need for a modified conceptual and theoretical framework for exploring the potential of small scale currency institutions to allow greater participatory monetary decision-making.

Shira Destinie Jones Vol 15(2011) A56-68

To cite this article: Jones, S.D. (2011) ‘Money and Participatory Governance: A review of the literature’ International Journal of Community Currency Research 15 (A) 56-68 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2011.006

Community Currency Research: An analysis of the literature

This article provides an analysis of the literature about community currencies. 1099 sources written in a variety of different languages form the basis of this study. Both empirical and theoretical contributions have been considered.  The first step is to make explicit the composition of this database. This implies that the field of research is circumscribed; the major features of community currencies are highlighted. The subsequent analysis comprises quantitative and qualitative aspects. In their evaluation, the authors demonstrate the strengths of the research carried out so far. They also show weaknesses and possibilities for future research, and make suggestions for improvements to the infrastructure of this field of research.

Rolf F.H. Schroeder, Yoshihisa Miyazaki and Marie Fare  A31-41

To cite this article: Schroeder, R.; Miyazaki, Y. and Fare, M. (2011) ‘Community Currency Research: An analysis of the literature’ International Journal of Community Currency Research 15 (A) 31-41 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2011.004

The Case for Monetary Diversity

This paper explores the recent evolution of money and banking, in the wake of the financial crisis, and its implication for the global economy and society. In particular, the paper considers whether or not these developments are leading to a more stable and sustainable capitalist financial order. Three broad approaches to monetary reform are considered, that target usury, debt and crisis respectively, and it is concluded that the global dependence on mono-currency systems is ignored by all three. Drawing on Marx, Hayek and Lietaer it is further posited that the facilitation of currency diversity, especially in the midst of an information age, is an extremely important policy prerequisite for a future stable and sustainable capitalist system.

Simon Mouatt Volume 14(2010) A17-28

IJCCRvol14(2010)A17-28Mouatt

To cite this article: Mouatt, S. (2010) ‘The Case for Monetary Diversity’ International Journal of Community Currency Research 14 (A) 17-28 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2010.003

Social Economy and Central Banks: Legal and Regulatory Issues on Social Currencies (Social Money) as a Public Policy Instrument Consistent with Monetary Policy

In Brazil, the National Secretariat for Solidarity Economy has encouraged the establishment of Community Development Banks that issue “social currencies for local circulation”, and has struggled to set up a regulatory framework for the use of social currencies, by means of public policies for solidarity finance, at the federal, state, and municipal levels of governments. Can social currencies be regarded as public policy instruments compatible with monetary policy under the responsibility of central banks? With the aim of systematizing this question and allowing the Central bank of Brazil to elaborate a reference study on this subject, this essay defines social currencies on the basis of constitutional precepts; identifies and examines legal and regulatory issues and logistical and operational aspects relating to social currency systems; and investigates why social currencies should be regarded as public policy instruments for local development compatible with monetary policy.

Marusa Vasconcelos Freire Volume 13(2009) A76-94

IJCCRvol13(2009)pp76-94Freire

To cite this article: Freire, M.V. (2009) ‘Social Economy and Central Banks: Legal and Regulatory Issues on Social Currencies (Social Money) as a Public Policy Instrument Consistent with Monetary Policy’ International Journal of Community Currency Research 13 76-94 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2009.007

Time for Each Other: Working Towards a Complementary Currency Model to Serve the Anti-Poverty Policies of the Municipality of Landgraaf, the Netherlands

In 2007, the Dutch municipality of Landgraaf requested an investigation into whether a community currency could support its anti-poverty policies. The literature research assembled empirical data on scrip, LETS and Time Banks. Their effects were evaluated against a set of specific goals: poverty relief, provision of care, social integration and return of long-term unemployed to the labour market. Complementary currencies have still to prove themselves on all objectives, and the last one is particularly hard to achieve. However, for the most part, the systems being investigated have not been set up in a professional way or with longer-term finances available. With these prerequisites in place, and a formal, trustworthy organisation taking the initiative, a complementary currency could still be a useful policy instrument. A Time Bank-like construction would work best, with a professional broker and a limited working area.

Miranda van Kuik Volume 13(2009) A3-18

IJCCRvol13(2009)pp3-18vanKuik

To cite this article: van Kuik, M. (2009) ‘Time for Each Other: Working Towards a Complementary Currency Model to Serve the Anti-Poverty Policies of the Municipality of Landgraaf, the Netherlands’ International Journal of Community Currency Research 13 3-18 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2009.002

Towards A Knowledge Economy

This paper provides a preliminary formulation of a new currency based on knowledge. Through a literature review of alternative currencies, various properties and benefits are selected that we hope will enable such a currency to be created. Nowadays not only money but also knowledge is necessary to do business. For instance, knowledge about markets and consumers is highly valuable but difficult to achieve, and even more difficult to store, transport or trade. The basic premise of this proposal is a knowledge measurement pattern that is formulated as a new alternative social currency. Therefore, it is an additional means of contributing to the worldwide evolution of a knowledge society. It is intended as a currency to facilitate the conservation and storage of knowledge, and its organization and categorization, but mainly its exploitation and transference.

Claudia I. Carrillo F., Josep Lluis de la Rosa and Agustí Canals Volume 11(2007) A84-97

IJCCR vol 11 (2007) 4 Carrillo

To cite this article: Carrillo, C., de la Rosa, J.L. and Canals, A. (2007) ‘Towards A Knowledge Economy’ International Journal of Community Currency Research 11 84-97 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2007.005

Establishing Time Based Community Currencies: Means of Measure, Exchange and Storage

In the search for operative, sustainable and complementary currencies and the methods of applying them in the real world, many discussions have occurred over the years on the IJCCR discussion website. This article proposes a perspective from an architect’s point of view when applying the use of time based currencies to the urban habitat and environment, and to the provision of basic needs within its communities especially for those unable to afford them due to the reduced provisions by governing bodies, and the higher costs to these and/or to those willing to acquire them independently from the privatized substitutes. The challenge becomes how to make the provision of these basic human, social and urban needs equitably accessible and co-operatively plentiful for the communities as well as worthwhile and competitive for investors. Too often the existing or proposed solutions are relegated to the world of charities and NGO associations and do not become interesting to the powers-that-be except out of a sense of personal, or corporate, moral obligation or social commitment. Thus, for a time currency to serve as “money” in the purchase of these basics, three simultaneous and non-contradictory roles are demanded of it: “it must function as a means to a) measure costs, b) foment exchanges and c) record transactions.” This article tackles these issues and invites debate on the positions taken.

Stephan Hawranick Serra Volume 10(2006) A56-67

IJCCR vol 10 (2006) 6 Serra

To cite this article: Serra, S.H. (2006) ‘Establishing Time Based Community Currencies: Means of Measure, Exchange and Storage’ International Journal of Community Currency Research 10 56-67 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2006.007

Community Exchange and Trading Systems in Germany

The article offers an overview of local and regional exchange systems in Germany. Historic as well as present-day systems are considered. They are analysed within the context of their social environment. The paper also provides an introduction to the German literature about these systems. It will be demonstrated that practical and theoretical developments are closely interlinked.

Rolf F. H. Schroeder Volume 10(2006) A24-42

IJCCR vol 10 (2006) 4 Schroeder

To cite this article: Schroeder, R. (2006) ‘Community Exchange and Trading Systems in Germany’ International Journal of Community Currency Research 10 24-42 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2006.005

A Proposal for a Brazilian Education Complementary Currency

The aim of this paper is to provide a brief introduction to a proposal for a complementary currency in the education sector in Brazil. Reviewing the background, objectives, scope and approach adopted, it intention is to reveal not only how it is wholly feasible to construct complementary currencies which are targeted at specific sectors but also to open up discussion of whether and how complementary currencies might be employed in the education sector more generally.

Bernard Lietaer Volume 10(2006) A18-23

IJCCR vol 10 (2006) 3 Lietaer

To cite this article: Lietaer, B. (2006) ‘A Proposal for a Brazilian Education Complementary Currency’ International Journal of Community Currency Research 10 18-23 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2006.004

Mutual Credit Systems and the Commons Problem: Why Community Currency Systems such as LETS Need Not Collapse Under Opportunistic Behaviour

This paper analyses theoretically how the Mutual Credit System (MCS) is affected by the Commons Problem. The MCS is defined as a pure accounting system of exchange, of which the Local Exchange and Trading System is a real life example. The Commons problem is caused by the incentive of members to issue units without the intention to repay this ‘debt’. This can potentially cause an MCS to collapse. It is found that eight institutional design principles for overcoming the Commons problem can also be applied to the MCS. Moreover, the dynamic interaction of economically motivated members of the MCS is analysed. This yields the conclusion that the MCS can provide a robust and stable alternative to the Central Money Supply System, whilst preserving its important special feature of an endogenous supply of money.

Jorim Schraven Volume 5(2001) 4

IJCCR Vol 5 (2001) 4 Schraven

To cite this article: Schraven, J. (2001) ‘Mutual Credit Systems and the Commons Problem: Why Community Currency Systems such as LETS Need Not Collapse Under Opportunistic Behaviour’ International Journal of Community Currency Research 5 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2001.002

Commodity Currencies for Fair and Stable International Exchange Rates

For the greater part of the history of money, we humans have used commodities as the basis of our currency systems. In 1971 the world went to a fiat currency system and the problems have increased. During the last 30 years the United States has seen a previously unheard of rate of bank failures. Since the early 70s labor wages have stagnated, corporate taxes have been shifted onto the individual, and the gap between the rich and the poor — countries and individuals — has escalated at similarly unheard of rates. This paper shows why fiat currencies are unworkable, why commodity currencies have also failed and how mutual credit systems may be the answer.

J. Walter Plinge Volume 5(2001) 1

IJCCR Vol 5 (2001) 1 Plinge

To cite this article: Plinge, J.W. (2001) ‘Commodity Currencies for Fair and Stable International Exchange Rates’ International Journal of Community Currency Research 5 <www.ijccr.net> ISSN  1325-9547 http://dx.doi.org/10.15133/j.ijccr.2001.005

The Economics of Local Exchange and Trading Systems: a Theoretical Perspective

This paper sets out to describe and analyse Local Exchange and Trading Systems (LETS) in economic terms. A LETS performs three main functions: the provision of transaction management services, credit, and market matching. LETS is an alternative form of money. A LETS is in (economic) theory attractive because: it provides cheap and flexible credit; allows the marketing of labour time in small disperse quantities without the need for an employer or capital; and, because its money function is locally contained, it can potentially alleviate some of the welfare implications of external shocks and structural interregional trade-imbalances. This feature operates through reviving local exchange of non-tradables by providing a medium of exchange. Unfortunately, current research does not provide a good basis for testing the validity of these potential functions of LETS because LETS is a heterotopia, of which the membership is neither representative of the population, nor primarily economically motivated.

Jorim Schraven Volume 4(2000) 5

IJCCR Vol 4 (2000) 5 Schraven