Tag: simulation model

New article: CCS and agent based modelling

IJCCR

Complementary Currency localisation in closed contours of economic exchange: Theoretical background and experimental verification

Dmitry Berg* and Olga Zvereva**

* Graduate School of Economics and Management, Ural Federal University, Ekaterinburg, Russia, BergD@mail.ru

** Engineering School of IT, Communications and Control Systems, Ural Federal University, Ekaterinburg, Russia, OM-Zvereva2008@yandex.ru

Abstract

The issue of basics for successful functioning of a complementary currency has gained utmost importance in the recent years because of the crisis phenomenon in the world economic domain. In the discussed research, the focus has been put on the structural aspect of the problem with the network approach having been used as a theoretical background. During the initial stage of the research, a mathematical model of a local municipal economy has been engineered. Using this economic model and a number of other economic local system models, it has been revealed that closed exchange contours could be found in every modelled system. It has been found that the number of closed exchange contours in an economic system is greater than in the similar random or social system, and exactly these contours form a structural basis for system’s sustainability. To evaluate the effect of complementary currency introduction, an agent-based computer model has been coded. This computer model has proved the efficiency of complementary currency introduction. Complementary money supports functioning of the economy, and, in case of the lack of real money, can improve and speed up economic processes flowing in the system. The described results have been received while computer simulation with implementation of the agent-based computer model and have been verified through the experiments in the real local economic system.

Keywords

Agent-based computer model, closed contour, network approach, sustainability.

Article Berg and Zvereva

To cite this article: Berg D. and Zvereva, O. (2020) ‘Complementary currency localization in closed contours of economic exchange: theoretical background and experimental verification’ International Journal of Community Currency Research Volume 24 (Summer 2020) 64-76; http://www.ijccr.net ISSN 1325-9547; DOI http://dx.doi.org/10.15133/j.ijccr.2020.012

Vol. 20 (Summer) pp. 41-53

IJCCR

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: Kavčič, S. (2016) ‘The “commodity – money – commodity” Mutual Credit Complementary Currency System. Marxian money to promote community trade and market economy’ 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