Complex Systems Modeling of Community Inclusion Currencies

Andrew Clark (), Alexander Mihailov () and Michael Zargham ()
Additional contact information
Andrew Clark: Department of Economics, University of Reading
Michael Zargham: Vienna University of Economics and Business

No em-dp2021-06, Economics Discussion Papers from Department of Economics, University of Reading

Abstract: This paper proposes a complex dynamic systems subpopulation model for the construction and validation of a novel form of local complementary currency, namely the Grassroots Economics Foundation's Community Inclusion Currency (CIC) implemented recently in Kenya. Differently from other related work in computer science or of a legal nature, we frame our analysis in a deeper economic context, thus bridging the gap across these parallel literatures. First, we highlight the potential usefulness of the emerging blockchain-technology backed CICs, now popular in the new - and interdisciplinary - field of cryptoeconomics. Essentially, CICs can act as a local liquidity-provision institutional device in poor or isolated economic regions to increase their internal exchange and economic value added, thereby serving as a market-based mechanism to alleviate poverty, in addition to government aid and akin in its automatism and credibility to a currency board monetary regime in national economies. The ultimate goal of these CIC systems is to promote a transition toward complete inclusion and integration into the national and global economies, pulling over the communities and regions out of self-sufficiency and poverty into more advanced stages of economic development and well-being. Second, we elicit 50 heterogeneous utility types according to observed transactions behavior and build a corresponding model and simulation at a meso-economic level, which for many purposes could prove more insightful for policymakers than the usual extreme perspectives of micro and macro.

Keywords: gender unemployment gap; demographic composition of unemployment; macroeconomic shocks; labour market institutions; monetary policy; Euro Area (search for similar items in EconPapers)
JEL-codes: E24 E32 E52 F45 J16 J24 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2021-01-31
New Economics Papers: this item is included in nep-mac and nep-pay
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http://www.reading.ac.uk/web/files/economics/emdp202106.pdf

Related works:
Journal Article: Complex Systems Modeling of Community Inclusion Currencies (2024)
Working Paper: Complex Systems Modeling of Community Inclusion Currencies (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:rdg:emxxdp:em-dp2021-06

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