Short monetary systems: take a risk, create money

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Journal of Risk Finance, The

ISSN: 1526-5943
Incorporates: Balance Sheet

Online from: 1999

Subject Area: Accounting and Finance

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Document Information:
Title:	Short monetary systems: take a risk, create money
Author(s):	Michael Mainelli, (Z/Yen Group Limited, London, UK)
Citation:	Michael Mainelli, (2012) "Short monetary systems: take a risk, create money", Journal of Risk Finance, The, Vol. 13 Iss: 4, pp.280 - 284
Keywords:	Currencies, Monetary policy, Regulation
Article type:	General review
DOI:	10.1108/15265941211254426 (Permanent URL)
Publisher:	Emerald Group Publishing Limited
Abstract:	Purpose – The purpose of this editorial is to examine fiat currencies and common tenders (trade-based money) from a risk perspective. The editorial encourages risk managers to consider the distributive benefits of a multiplicity of currencies and urges them to examine common tenders both old, such as the Swiss WIR, and novel, such as capacity exchange monies, as risk management tools. Design/methodology/approach – The editorial is based on research conducted for the City of London Corporation in 2011 into capacity, trade and credit which examined new architectures for commerce and money. Findings – The editorial links Freiwirtschaft movement ideas with some characteristics of common tenders. Further, it considers whether some simple regulatory approaches might make such common tenders more useful. Originality/value – Of note, the author suggests that a modern alternative to government regulation might be an audited ISO accreditation standard for “good currency” or “good common tender”.