Tagged: Self-sufficiency

Self-Regulation and Self-Sufficiency

A common theme in alternative or complementary currencies is the idea of a self-regulating market with a sufficient money supply. In satconomy, each unit entity’s currency sufficiency is not determined by the quantity of units it is able to issue, but by how much of those issued units it is able to spend, i.e., how much of its currency the market accepts. It is therefore quite easy to assure a sufficient quantity of money in any currency system, with the main challenge being the availability of products that one could buy with non-traditional currency. Self-sufficiency in currency does not automatically translate into self-sufficiency or choices in market products.

On the other hand, self-regulating markets are necessarily built from self-regulating unit entities. While an entity may not be expected to be self-sufficient, it is nevertheless expected to be self-regulating with its resource and product use. Market participants exert a cumulative influence on an entity by not accepting currency or not buying products from it, but otherwise the market relies on each unit entity to be self-regulating with currency issuance. Each entity must determine and declare its own limits, and market participants must evaluate the entity’s ability to self-regulate against internally-imposed limits. Through the practiced recognition of limitations and capacities, participants contribute to the dynamic establishment of sustainable markets with open borders and increased access to needed products.