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
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.
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
** Université de Lyon / Université Lumière Lyon 2, Triangle
This text contemplates the difficulties of French local currencies and the pathways to improvement, in the event of greater sustainability at the local level. After a panorama of the French local currencies, and the observation of a disappointment from a quantity viewpoint, the paper discusses requirements and improvements for a local currency (LC) to contribute to a greater sustainability at the local level. It presents the notion of the relevant territory for a local currency. It then discusses a few crucial points of improvement and the difficulties they face: the role of local governments as major partners; the need for employees in order to constitute a permanent basis for the scheme’s activity and development; the need for an digital counterpart of the currency; the need for financing activities. The conditions for a ripple effect are eventually discussed.
To cite this article: Jérôme Blanc and Marie Fare (2018) ‘Pathways to Improvement. Successes and Difficulties of Local Currency Schemes in France since 2010’ International Journal of Community Currency Research 2018 Volume 22 (Winter) 60-73 <www.ijccr.net> ISSN 1325-9547. DOI: http://dx.doi.org/10.15133/j.ijccr.2018.006
SGH Warsaw School of Economics, Poland; email@example.com
This paper draws out key conclusions from a research project – a pilot empirical study on local complementary currencies (exchange systems). The study comprised 15 interviews with coordinators representing 13 existing alternative currency systems in Poland out of 20 identified. The research was conducted between February and April 2017. The main goal of the study was empirical determination of the factors involved in the rise and fall of alternative currencies systems in Poland and conditions for their survival – that is, sustainability factors. The author demonstrated that, among examined system, two are performing better than the others, and they meet the efficiency conditions: they have a relatively high and stable or growing number of active members and exchanges, and they are constantly developed without reporting any substantial problems. Despite many differences, they have much in common. The analysis of the two examples in comparison with other systems enabled forming a list of sustainability factors and suggestions for the coordinators or initiators concerning how and what to do and what to avoid to make the system more sustainable.
To cite this article: Sobiecki, Grzegorz (2018) ‘Sustainability of local complementary currencies – Conclusions from an empirical study in Poland’ International Journal of Community Currency Research 2018 Volume 22 (Summer) 105-124 <www.ijccr.net> ISSN 1325-9547. DOI http://dx.doi.org/10.15133/j.ijccr.2018.019
Las Monedas Locales Complementarias (MLC) son redes de intercambios que pueden tener muy diversas tipologías, características y objetivos. Este artículo se propone dar una visión panorámica de su implementación como política pública, utilizando un análisis comparativo de casos históricos y, sobretodo, actuales, a partir del marco analítico, basado en los Modelos de Orientación Estratégica (MOEs) a partir de dos variables clave, la intervención del sector público y de la participación del voluntariado en la gestión de las MLC.
Para citar este artículo: Honzawa, A. (2019) ‘Las monedas locales complementarias: modelos de orientación estratégica como política pública’ International Journal of Community Currency Research 23 (Winter) 20-29 <www.ijccr.net> ISSN 1325-9547. http://dx.doi.org/10.15133/j.ijccr.2019.003
This paper presents a novel socio-psychological analysis of the motivations and experiences of mutual credit members in the United Kingdom and in the United States. Primary data comprised of interviews and participant observation, supplemented with secondary data analysis of organisation documents, and a review of the literature in psychology, sociology and economics. Group members were motivated to secure personal resilience against hardship, and the personal agency that results from this, along with the experiences of community and cultural identity positioning, motivates engagement. Consequently these groups are defined as cultural communities offering personal resilience to members through informal reciprocity. This approach, which prioritises the social aspects of exchange, has implications for the design of complementary currencies, particularly mutual credit initiatives, and demonstrates the value of engaging with the fields of psychology and sociology in developing interdisciplinary understandings of alternative economic practice.
To cite this article: Smith, C.J. and Lewis, A. (2016) ‘Psychological Factors influencing the Use and Development of Complementary Currencies’ International Journal of Community Currency Research 20 (Summer) 2-23 <www.ijccr.net> ISSN 1325-9547. DOI http://dx.doi.org/10.15133/j.ijccr.2016.001
Tohoku University Graduate School of Economics and Management in Sendai, Japan; firstname.lastname@example.org
This paper investigates key factors for the durability of community currencies (CCs) by conducting a comparative dual case study on two long lived CCs in Japan. CCs both in Japan and abroad have exhibited effectiveness in developing social capital however the literature reveals a lack of academic research on the management or operation of CCs. Therefore this paper aims to identify key factors for the durability of CCs that could contribute to the development of a best practices model for social entrepreneurs. A secondary purpose is to add to the English body of knowledge on Japanese CC systems. Two contrasting Japanese CC organizations that have operated for more than a decade are investigated in depth. This entailed gathering both qualitative and quantitative data from both organizations and analyzing the data within a Nonprofit Organization (NPO) management framework. The results reveal five key durability factors: creating value and utility for stakeholders, appealing to the local solidarity of businesses, the receptiveness of businesses towards CCs, partnering with a corporation or larger institution and solid organizational structure. The main implication of these factors is that successfully engaging external stakeholders is crucial to sustaining the operations of a CC organization.
Community currency, durability factors, stakeholders, best practices framework.
The causal link between economic growth and environmental degradation has received much attention in recent social science literature(s). Although such studies have generated key insights, the role of monetary systems – as central components of all modern economies – has been almost completely overlooked. This papers argue that monetary systems affect natural environments through the economic activities that particular monetary systems promote. It focuses on two specific aspects of any monetary system: governance and scale. With respect to the former, it shows how the rules that govern monetary systems can promote economic practices with environmental implications. With respect to the latter, the paper shows how the scale at which money is issued and/or circulates affects patterns and intensities of economic activity, both of which have clear environmental consequences. A corollary of the argument is that changing the governance and scale of monetary systems can alter economic activity in environmentally-harmful or -helpful ways.
To cite this article: Brooks, S. (2015) ‘How Green is Our Money? Mapping the Relationship between Monetary Systems and the Environment’ International Journal of Community Currency Research 19 (Winter) 12-18 <www.ijccr.net> ISSN 1325-9547 http://dx.doi.org/10.15133/j.ijccr.2015.018