The mechanism of introducing community currencies to mutual support time savings: financial innovation to deal with population aging
(2.Asset and Laboratory Management Department, Northeast University, Shenyang, Liaoning Province 110004)
【Abstract】In order to cope with population aging, the mutual support time saving mode has begun to be piloted in some small communities. The purpose of this paper is to demonstrate the mechanism of introducing government-guaranteed community currencies to mutual support time savings against the background of population aging. Based on Samuelson-Diamond two-generation overlapping model, this paper designed and built the old-age care service saving model with fiat money as the medium and the mutual time saving model with community currencies as the medium respectively. The results show the following. (1) The use of fiat money as the medium of savings inhibits people’s willingness for old-age service savings. (2) The introduction of community currencies as the medium of mutual support time savings not only enhances people’s motivation for old-age care service savings, but also is more in line with the new normal of population aging. (3) Compared with fiat money, community currencies are more suitable to act as the medium of mutual support time savings. The research conclusions are as follows. As a financial innovation of aging society, the introduction of community currencies with national credit guarantee can overcome the limitations of the current time saving mode, achieve the optimization of idle endowment resource allocation beyond the family in society as whole, and realize the gradual transformation from family endowment to social endowment, in order to cope with the new normal of population aging. This paper can provide theoretical support and decision-making reference for the government to issue community currencies with national credit guarantee.
【Keywords】 population aging; community currency; mutual support; time savings; overlapping generation model;
(Translated by LI Mengling)
 Schultz, P. China Economic Quarterly (经济学(季刊)), (4): 991−1018 (2005).
 Bei, D. & Luo, Y. Economic Perspectives (经济学动态), (9): 4−10 (2013).
 Dang, J. Scientific Research on Aging (老龄科学研究), (5): 3−10 (2013).
 Gan, F. Japan Studies (日本研究), (2): 84−90 (2004).
 Gu, L. and Xiao, H. Statistical Research (统计研究), (9): 8−11 (2004).
 He, J. The Journal of Quantitative & Technical Economics (数量经济技术经济研究),(4): 48−55 (2002).
 Huang, S. Social Security Studies (社会保障研究), (6):104−111 (2014).
 Liu, J. Economic Perspectives (经济学动态), (5): 103−106 (2007).
 Liu, X. Zhengce Liaowang (政策瞭望), (9): 42−45 (2016).
 Liu, W, & Hang, B. Statistical Research (统计研究), (12): 77−82 (2013).
 Lu, W., Zheng, H. & Zhang, P. Journal of Northeastern University (Social Science) (东北大学学报(社会科学版)), (6): 580−586 (2017).
 Ma, S., Song, Q. & Fu, Y. Chinese Journal of Population Science (中国人口科学), (6): 56−68 (2015).
 Su, Y. & Zheng, S. Coastal Enterprises and Science & Technology (沿海企业与科技), (1): 159−161 (2009).
 Zhang, X. master’s thesis, Nanjing University (2014).
 Zhao, X., Wang, H. & Liu, T. China Soft Science (中国软科学), (8): 156−165 (2017).
 Zheng, H., Li, Y. & Li, Y. Journal of Northeastern University (Social Sciences) (北华大学学报(社会科学版)), (6): 63−70 (2018a).
 Zheng, H., Wang, H. & Li, Y. Journal of Northeastern University (Social Science) (东北大学学报(社会科学版)), (6): 586−593 (2018b).
 Zheng, H. Mutual Pension and Community Time Currency: Financial Innovation for The Aging Population (互助养老与社区时间货币-应对人口老龄化的金融创新). Beijing: Economic Press China (2019).
 Blanc J, Fare M. Understanding the role of governments and administrations in the implementation of community and complementary currencies. Annals of Public and Cooperative Economics, 2013, 84 (1): 63−81.
 Cahn E S. No more throw-away people: The co-production imperative. 2nd ed. Washington DC: Essential Books, 2004.
 Leland H E. Saving and uncertainty: The precautionary demand for saving. The Quarterly Journal of Economics, 1968, 82 (3): 465−473.
 Modigliani F, Brumberg R. Utility analysis and the consumption function: An interpretation of cross-section data. Kurihara K K. Post-Keynesian economics. New Brunswick: Rutgers University Press, 1954.
 Modigliani F, Cao S L. The Chinese saving puzzle and the life-cycle hypothesis. Journal of Economic Literature, 2004, 42 (1): 145−170.
 Nuessle F. Distributed capitalism: A scientific validation for “Going Local.” World Futures, 2013, 69 (7−8): 450−478.
 Peterson S. Money and the local economy. World Future, 2013, 69 (7−8): 515−530.
 Samuelson P A. An exact consumption-loan model of interest with or without the social contrivance of money. The Journal of Political Economy, 1958, 66 (6): 467−482.
 Seyfang G. Community currencies: Small change for a green economy. Environment and Planning A: Economy and Space, 2001, 33 (6): 975−996.
 Whitham M M, Clarke H. Getting is giving: Time banking as formalized generalized exchange. Sociology Compass, 2016, 10 (1): 87−97.
 Wonneberger E T, Mieg H A. Trust in money: Hard, soft and idealistic factors in Euro, gold and German community currencies. Journal of Sustainable Finance & Investment, 2011, 1 (3−4): 230−240.