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Symposium 2013

Proposal - Research on Complementary currencies

The Challenge

The global financial crisis has revealed regulatory failure in financial markets and demonstrated the urgent need for reform. In particular, it is now widely accepted that in addition to established m ...

The global financial crisis has revealed regulatory failure in financial markets and demonstrated the urgent need for reform. In particular, it is now widely accepted that in addition to established microprudential policies, macroprudential policies aimed at increasing the stability of the financial sector as a whole are imperative. But an active debate has emerged over what role the central bank should play with this augmented set of policies.

Much of the main stream economic academia seem to have ignored the fact, that millions of people are using complementary currencies which are based on demurrage instead of interest rates. These currencies speed up circulation of money and create more social wealth by reducing scarcity phenomena attached to common interest based money.

Especially Bernard Lietaer has continuously promoted these new cooperative currencies which more easily link unused resources with unmet needs, creating a more equal distribution of wealth, more social capital and less growth pressure.

Lietaer also  promotes dual currency systems, where “normal” money circulates together with “interest free money”. He especially lays out in his artikel on “Commercial Credit Circuit (C3): A Financial Innovation to Structurally Address Unemployment“ how these new currencies are able to promote sustainable growth between coorporations.

 

Also the much stated example of the “Wir”-Bank in Switzerland serves as an example that the monopoly of central banks to a single currency is questionable. The Wir-Bank is a cooperative bank for small and medium sized companies offering housing  loans at 0,0019 % Libor. It has been proven by scientific research that, the Swiss “Wir”, which is a low-interest money is creating sustainable economic growth and well being in Switzerland for almost 100 years now.

Many people around the world are creating their own cooperative currencies to harvest these positive effects. Regardless of this new reality there seems to be very little to no research being conducted on these alternative currencies at universities worldwide.

As a proposal, economic academia should be looking closer into the positive effects that alternative money currencies seam to have. If there is a new way thinking about money is out there, there is no excuse for not undertaking scientific research.

This is a call to create world wide scientific research program on  this very important issue in university, schools and colleges world wide to learn the secrets of theses new ways of thinking!

 

 

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