The mechanism of introducing community currencies to mutual support time savings: financial innovation to deal with population aging

ZHENG Hong1 LI Ying1 LI Yong2

(1.School of Business Administration, Northeastern University, Shenyang, Liaoning Province 110004)
(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;


【Funds】 National Natural Science Foundation of China (71473033)

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(Translated by LI Mengling)


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This Article


CN: 31-1012/F

Vol 45, No. 05, Pages 72-83+98

May 2019


Article Outline


  • 1 Introduction
  • 2 Literature review
  • 3 Basic model
  • 4 Extended model
  • 5 Conclusion and policy suggestion
  • References