Government

What can governments do to address the banking crisis, remedy unemployment, poverty and ecological threats, and create conditions for sustainable abundance?

Business

How can time-tested currency innovations such as mutual credit systems help businesses of all sizes deal with cash flow shortages and monetary instability?

Community

What can communities do to leverage their untapped wealth and connect resources that would otherwise remain unused with needs that would otherwise remain unmet?

Research

What can scientific and academic research tell us about how to design and implement more effective and resilient monetary systems?

Currency Proposals

What types of complementary currencies could help us overcome current obstacles to the flourishing of our educational, energy, commercial, and other systems?

Home » Articles & Papers

Is Our Monetary Structure a Systemic Cause for Financial Instability? Evidence and Remedies from Nature (April 2010)

Submitted by on May 19, 2010 – 11:29 pmNo Comment

Abstract — Fundamental laws govern all complex flow systems, including natural ecosystems, economic and financial systems. Natural ecosystems are practical exemplars of sustainability: enduring, vital, adaptive. The sustainability of any complex flow system can be measured with a single metric as an emergent property of its structural diversity and interconnectivity; it requires a balance in emphasis between efficiency and resilience.  The urgent message for economics from nature is that the monoculture of national currencies, justified on the basis of market efficiency, generates structural instability in our global financial system. Economic sustainability therefore requires diversification in types of currencies, specifically through complementary currencies.

http://www.scribd.com/doc/31613632