Mutual Credit-Based Financing

Discussion

Michelle Grant:

"A new Land Commons would utilise a mutual credit mechanism (a collaborative credit accounting framework) (Slater and Jenkin, 2016; Fleischman et al., 2020), to buy parcels of land without accruing debt by selling inflation-proof vouchers (Mutual Credit Services, no date) denominated in land area, at a discount to investors.

Inalienable, with strong asset locks, the land would be under Land Commons stewardship and rented to tenants (also Commoners), who would pay for rights to use the land in a way that supports and expands the vision of the Commons. Vouchers could be sold by investors, including to tenants, to realise a return on investment (Darby, 2023; Green, 2023)."

(https://cms.lowimpact.org/wp-content/uploads/CommonsAgroecology_Report.pdf)

More information

Fleischman, T., Dini, P. and Littera, G. (2020) ‘Liquidity-Saving through Obligation-Clearing and Mutual Credit: An Effective Monetary Innovation for SMEs in Times of Crisis’, Journal of Risk and Financial Management, 13(12), p. 295. Available at: https://doi.org/10.3390/jrfm13120295.

Mutual Credit Services (no date) 'Use-Credit Obligations'. Available at: https://www.mutualcredit.services/use-creditobligations (Accessed: 2 January 2024).

Slater, M. and Jenkin, T. (2016) ‘The Credit Commons: A Money for the Solidarity Economy’. Available at: http://www.creditcommons.net/assets/credit-commons.pdf (Accessed: 15 December 2023)