Community Clearing and Settling of Obligations

* Article: Community Clearing and Settling of Obligations using Historical Techniques or a Matrix. Hans-Florian Hoyer. April 2021

URL = https://www.academia.edu/48690578/Community_Clearing_and_Settling_of_Obligations

Description

From ChatGPT, based on the two first sections of full-text:

"This article explores historical and mathematical techniques for community clearing and the settling of obligations without the direct use of money. It examines how communities have historically managed transactions through credit, mutual obligations, and clearinghouses, enabling trade with minimal monetary circulation. The text outlines the fundamental principles of credit-based trade, drawing on historical economic thought, particularly from Sir James Steuart and Henry Dunning MacLeod, to illustrate how financial confidence and structured clearing mechanisms reduce reliance on physical currency.

The article introduces key configurations for recording and clearing obligations, from simple merchant-customer credit transactions to complex multi-party clearing through matrix-based settlement systems. It describes how communities can optimize trade by tracking and balancing obligations collectively, minimizing financial risk and inefficiencies. The role of digital technology in enhancing these traditional clearing systems is briefly acknowledged but left open for further exploration.

By revisiting historical methods of clearing obligations and integrating them with contemporary tools, the article highlights alternative financial models that can foster resilience in communities, particularly in times of economic instability."