What was the Deal for the Participants of the Argentine Local Currency Systems, the Redes de Trueque?

Abstract

IntroductionThe poor, unemployed, and unpaid workers who suffer money shortages have an inadequate and limited inclusion in the regular markets, which are organised on the assumption that buyers work in paid employment and have money available. These groups do not simply purchase less than better-off buyers. They have other buying practices, face the decision of purchasing goods and services with disparate considerations, visit other outlets and shops, and generally experience their provisioning differently. They participate and often organise alternative institutional frameworks to exchange goods and services öa phenomenon of interest within the diverse economies research programme (Gibson-Graham, 2008).Local exchange networks represent one of the alternatives to overcome the exclusionary mechanisms of the regular market economy. When local exchange networks include the use of a nonstate complementary currency to facilitate payments, they adopt an institutional form known as Local Complementary Currency Systems (LCCSs), described by Ekins and Max-Neef (1986). Among other goals LCCSs are designed to protect the local economy through global economic downturns (Blanc, 2006;Go¨mez and Helmsing, 2008), promote the social and economic development of the community (Seyfang, 2001a;2001b;Thorne, 1996), and offer an environmental alternative to the global domination of money on exchanges (Pacione, 1999). In the English-speaking world the most widespread variant is the Local Exchange Trading System (LETS) which has been researched extensively (

Money as an Institution: Rule versus Evolved Practice? Analysis of Multiple Currencies in Argentina

“…By all means, Trueque created an institutional equivalent of what is considered money in modern economies. It was an abstract means of payment, depersonalised, dematerialised, transferable promise to pay (Gomez 2010;Gonzalez Bombal 2002;North and Huber 2004). The créditos were printed in denominations following those of the formal economy.…”

Complementary Currency Systems and their Ability to Support Economic and Social Changes

“…Despite over‐representation of women among the users of alternative systems, these systems have not significantly improved their social condition, though they have improved the women's sociability (Comeau and Boulianne, ; Lenzi, ; Williams, ). With regard to social inequalities, Gómez () has demonstrated that while CCS have helped some low‐income groups to protect and enhance their standard of living, they have been less effective as a general means of reducing poverty. Studies of LETS, in particular, have revealed that inequalities of income and gender on formal markets have tended simply to be reproduced in alternative systems (Bogani and Parysow, ; North, , 2010; Seyfang, ).…”

Competition of Currencies: An Alternative to Legal Tender

“…This relationship between the growth of demand for this currency and subsequent increase in its circulation with an increment in the inflation rate could then be rewritten as Equation 8. The alternative currency Constant circulating in the 1970s, the demand for more stable local currencies during hyperinflation in Germany in the 1920s or emergence of the alternative currencies Redes de Trueque in Argentina (see Gomez, 2010) during severe inflationary period prove demand for and willingness to switch to a new potentially riskier currencies in times of turmoil. On the other hand, currency Liberty dollars displays a similar demand for stable currency in times of relatively economically stable period.…”

“…As stated in Hogan (2012) Currency Constant circulating in the 1970s was also demanded for its goal to provide inflationary-proof currency. Similarly, thousands of competing currencies in Germany in the 1920s and alternative currencies Redes de Trueque in Argentina described by Gomez (2010) emerged during high inflationary period with an option to switch to these relatively more stable currencies. The promise of lower inflation represented a sufficient reason for switching to a riskier new secondary currency in times of turmoil.…”

“…Over four thousands alternative currencies circulated worldwide in about fifty-eight countries in 2002 (see John Turmel list cited in Gomez, 2010Gomez, , p. 1672. Those, which developed as a substitute to national one, helped individuals to meet transactions in times of monetary crisis.…”