Special Issue "Monetary Plurality and Crisis"

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Risk".

Deadline for manuscript submissions: closed (20 December 2020).

Special Issue Editors

Prof. Dr. Georgina M. Gomez
Website
Guest Editor
International Institute of Social Studies, Erasmus University Rotterdam, Kortenaerkade 12, 2518AX The Hague, The Netherlands
Interests: institutions; social economy; development studies; complementary currencies; money local economic development
Dr. Leander Bindewald
Website
Guest Editor
Monneta gGmbh, Ginsterweg 5, 31595 Steyerberg, Germany
Interests: complementary currencies, monetary ontology, institutionalism, financial regulation

Special Issue Information

Dear colleagues,

“After the financial crisis” can always be seen as the period before the next financial crises. Even in periods of relative stability, economic inequalities and climate calamities are stretching the social fabric on the local, national, and international levels. Complementary currencies have been deployed to supplement conventional currency systems and ameliorate their shortcomings, even before the emergence of cryptocurrencies. Thus, monetary plurality is a reality not only during financial crises, but it is a recurrent characteristic of capitalist economies. Monetary monopoly over a national territory is a mission that has never been completely accomplished.

This Special Issue focuses on the role of individual complementary currencies and monetary diversity generally in stabilizing our financial systems and alleviating the impact of risk and crisis on the local, national or international scale. Research questions welcome for this publication include, but are not limited to, the stabilizing or destabilizing effect of complementary currencies within monetized capitalist societies, their life-cycles in relation to national and international crisis, the impact of blockchain technologies in the application of currency innovations, and the conceptual and regulatory paradigms that support or impede monetary diversity as a key element of systemic resilience.

We invite original contributions in English that focus on issues of mitigation of risk, monetary resilience, and economic and social sustainability. Eligible contributions are not limited to quantitative methods. Data and core findings need to be presented in minimum one diagram or chart. 

We encourage papers from the global South and aim to give attention to a diversity of authors and contexts. Limited financial support for publication fees and proofreading is available to excellent submissions by authors without other sources of institutional funding. Please contact the editors of this special issue about Article Processing Charges (APC) and possible reductions.

Prof. Dr. Georgina M. Gomez
Dr. Leander Bindewald
Guest Editors

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All papers will be peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Journal of Risk and Financial Management is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1200 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • complementary currencies
  • crypto currencies
  • pluralistic monetary theory
  • currency crisis
  • financial crisis
  • financial inclusion
  • monetary innovation
  • social and economic sustainability
  • monetary stability

Published Papers (5 papers)

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Research

Open AccessArticle
Inconsistent Definitions of Money and Currency in Financial Legislation as a Threat to Innovation and Sustainability
J. Risk Financial Manag. 2021, 14(2), 55; https://doi.org/10.3390/jrfm14020055 - 27 Jan 2021
Abstract
External shocks, like the climate catastrophe or the COVID-19 pandemic, as well as intrinsic fallacies like the securitization of bad debt leading up to the financial crisis in 2008, point to the need for updating our monetary and financial systems. Ensuring their adequacy [...] Read more.
External shocks, like the climate catastrophe or the COVID-19 pandemic, as well as intrinsic fallacies like the securitization of bad debt leading up to the financial crisis in 2008, point to the need for updating our monetary and financial systems. Ensuring their adequacy and resilience is an important factor for sustainability at large. This paper examines the definitions of “money” and “currency” in financial legislation as a foundational factor in achieving systemic resilience by allowing or hampering monetary innovation and diversity. From the unencumbered vantage point that the practice of complementary currencies offers, definitions of the terms “money” and “currency” are here traced through the laws and regulations of the United States of America, from the beginnings of modern banking to the recent rulings on crypto-currencies. They are both found to be used and defined in contradictory ways that are inapt even in regard to conventional modern banking practices, let alone when applied to novelty in payment, issuance and valuation. Consequently, this paper argues that basic legal definitions need to be reviewed and consolidated to enable the innovation and diversification in monetary systems needed for long term macro-economic stability. With this in mind, a terminology that is consistent with monetary practice—current, past and future—as well as the procedural difficulties of reforming laws and regulations is proposed. Full article
(This article belongs to the Special Issue Monetary Plurality and Crisis)
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Open AccessArticle
Liquidity-Saving through Obligation-Clearing and Mutual Credit: An Effective Monetary Innovation for SMEs in Times of Crisis
J. Risk Financial Manag. 2020, 13(12), 295; https://doi.org/10.3390/jrfm13120295 - 27 Nov 2020
Abstract
During financial crises, liquidity tends to become scarce, a problem that disproportionately affects small companies. This paper shows that obligation-clearing is a very effective liquidity-saving method for providing relief in the trade credit market and, therefore, on the supply-side or productive part of [...] Read more.
During financial crises, liquidity tends to become scarce, a problem that disproportionately affects small companies. This paper shows that obligation-clearing is a very effective liquidity-saving method for providing relief in the trade credit market and, therefore, on the supply-side or productive part of the economy. The paper also demonstrates that when used in conjunction with a complementary currency system such as mutual credit as a liquidity source the effectiveness of obligation-clearing can be doubled. Real data from the Sardex mutual credit system show a reduction of net internal debt of the obligation network of approximately 25% when obligation-clearing is used by itself and of 50% when it is used together with mutual credit. These instruments are also relevant from the point of view of risk mitigation for lenders, based in part on the information on individual companies that the mutual credit circuit manager can provide to banks (upon the circuit member’s request) and in part on the relief that liquidity-saving provides especially to NPL companies. The paper concludes by outlining recommendations for how even greater savings could be achieved by including the tax authority as another node in the obligation network. Full article
(This article belongs to the Special Issue Monetary Plurality and Crisis)
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Open AccessArticle
Economic Advantages of Community Currencies
J. Risk Financial Manag. 2020, 13(11), 271; https://doi.org/10.3390/jrfm13110271 - 03 Nov 2020
Abstract
Community currencies are only sometimes economically advantageous. We focus on seasonal changes in money supply and assume that community currencies stabilize the money supply in a local community. This leads to additional transactions during seasons of insufficient supply of national currency. We hypothesize [...] Read more.
Community currencies are only sometimes economically advantageous. We focus on seasonal changes in money supply and assume that community currencies stabilize the money supply in a local community. This leads to additional transactions during seasons of insufficient supply of national currency. We hypothesize community currencies are therefore economically advantageous in a surrounding of seasonally insufficient money supply. We test the hypothesis qualitatively with two case studies, the German Chiemgauer and the Kenyan Sarafu Credit. We find community currencies are only economically advantageous in an environment of insufficient liquidity. Full article
(This article belongs to the Special Issue Monetary Plurality and Crisis)
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Open AccessArticle
Digital Payments, the Cashless Economy, and Financial Inclusion in the United Arab Emirates: Why Is Everyone Still Transacting in Cash?
J. Risk Financial Manag. 2020, 13(11), 260; https://doi.org/10.3390/jrfm13110260 - 30 Oct 2020
Abstract
Since the oil price downturn of 2015, the United Arab Emirates and fellow Gulf Cooperation Council countries have worked hard to expand digital payments in the interest of improved tax and revenue collection, transparency, and security. Yet despite a deep transformation and diversification [...] Read more.
Since the oil price downturn of 2015, the United Arab Emirates and fellow Gulf Cooperation Council countries have worked hard to expand digital payments in the interest of improved tax and revenue collection, transparency, and security. Yet despite a deep transformation and diversification of their payment eco-systems and the formalization of plans to become “cashless economies” modelled on South Korea and Sweden, cash continues to dominate payments in both countries. While industry players typically attribute the prevalence of cash in the region to questions of infrastructure readiness, transaction costs, and cyber-security, this paper finds that plans to expand digital payments at the expense of cash may not be well-adapted to countries with high levels of socio-economic inequality. It proposes a link between socio-economic inequality and use of cash in emerging economies, and concludes that it may be better to not view the relationship between cash and digital payments in binary zero-sum terms, until there is a better understanding of the socio-economic, technological, and policy context in which countries like South Korea and Sweden have managed to reduce their reliance on cash in favor of a diversified digital payments eco-system. Full article
(This article belongs to the Special Issue Monetary Plurality and Crisis)
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Open AccessArticle
Black Currency of Middle Ages and Case for Complementary Currency
J. Risk Financial Manag. 2020, 13(6), 114; https://doi.org/10.3390/jrfm13060114 - 03 Jun 2020
Abstract
Monetary historians argue that two types of currencies were circulating in the middle ages of Europe. The first was the standard historical form of money made up of gold and silver coins, and the second was a set of small pieces of copper [...] Read more.
Monetary historians argue that two types of currencies were circulating in the middle ages of Europe. The first was the standard historical form of money made up of gold and silver coins, and the second was a set of small pieces of copper and other metallic substances used mainly in towns and townships for local trade as currency. Jetton and tokens are monetized objects that are not official currencies; they were of lower quality of the inferior metallic object, which were used for day-to-day transaction needs. The drive for local monetary decentralization is pointed to build up fiscal autonomy and responsible local monetary institutions. This paper reasons that the monetary regime of the Renaissance was a real and genuine trimetallic currency regime. Full article
(This article belongs to the Special Issue Monetary Plurality and Crisis)
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