1.
Lietaer B; Ulanowicz R E; Goerner S J; McLaren N
Is Our Monetary Structure a Systemic Cause for Financial Instability? Evidence and Remedies from Nature Journal Article
In: Journal of Futures Studies, vol. 14, iss. 3, pp. 89-108, 2010, ISSN: 10276084.
@article{Lietaer2010b,
title = {Is Our Monetary Structure a Systemic Cause for Financial Instability? Evidence and Remedies from Nature},
author = {Bernard Lietaer and Robert E. Ulanowicz and Sally J. Goerner and Nadia McLaren},
url = {https://bernard-lietaer.org/wp-content/uploads/2022/07/2010-Is-Our-Monetary-Structure-a-Systemic-Cause-for-Financial-Instability-Evidence-and-Remedies-from-Nature-Lietaer-et-al-annotated.pdf},
issn = {10276084},
year = {2010},
date = {2010-01-01},
urldate = {2010-01-01},
journal = {Journal of Futures Studies},
volume = {14},
issue = {3},
pages = {89-108},
abstract = {Fundamental laws govern all complex flow systems, including natural ecosystems, economic and financial systems. Natural ecosystems are practical exemplars of sustainability: enduring, vital, adaptive. The sustainability of any complex flow system can be measured with a single metric as an emergent property of its structural diversity and interconnectivity; it requires a balance in emphasis between efficiency and resilience. The urgent message for economics from nature is that the monoculture of national currencies, justified on the basis of market efficiency, generates structural instability in our global financial system. Economic sustainability therefore requires diversification in types of currencies, specifically through complementary currencies.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}
Fundamental laws govern all complex flow systems, including natural ecosystems, economic and financial systems. Natural ecosystems are practical exemplars of sustainability: enduring, vital, adaptive. The sustainability of any complex flow system can be measured with a single metric as an emergent property of its structural diversity and interconnectivity; it requires a balance in emphasis between efficiency and resilience. The urgent message for economics from nature is that the monoculture of national currencies, justified on the basis of market efficiency, generates structural instability in our global financial system. Economic sustainability therefore requires diversification in types of currencies, specifically through complementary currencies.
2.
Goerner S J; Lietaer B; Ulanowicz R E
Quantifying economic sustainability: Implications for free-enterprise theory, policy and practice Journal Article
In: Ecological Economics, vol. 69, iss. 1, pp. 76-81, 2009, ISSN: 09218009.
@article{Goerner2009,
title = {Quantifying economic sustainability: Implications for free-enterprise theory, policy and practice},
author = {Sally J. Goerner and Bernard Lietaer and Robert E. Ulanowicz},
url = {http://linkinghub.elsevier.com/retrieve/pii/S0921800909003085https://bernard-lietaer.org/wp-content/uploads/2022/07/2009-Quantifying-economic-sustainability-Implications-for-free-enterprise-theory-policy-and-practice-Goerner-Lietaer-Ulanowicz-annotated.pdf},
doi = {10.1016/j.ecolecon.2009.07.018},
issn = {09218009},
year = {2009},
date = {2009-01-01},
urldate = {2009-01-01},
journal = {Ecological Economics},
volume = {69},
issue = {1},
pages = {76-81},
abstract = {In a previous paper (Ulanowicz, Goerner, Lietaer, and Gomez, 2009), we combined thermodynamic, network, and information theoretic measures with research on real-life ecosystems to create a generalized, quantitative measure of sustainability for any complex, matter/energy flow system. The current paper explores how this metric and its related concepts can be used to provide a new narrative for long-term economic health and sustainability. Based on a system's ability to maintain a crucial balance between two equally essential, but complementary factors, resilience and efficiency, this generic explanation of the network structure needed to maintain long-term robustness provides the missing theoretical explanation for what constitutes healthy development and the mathematical means to differentiate it quantitatively from mere growth. Matching long-standing observations of sustainable vitality in natural ecosystems and living organisms, the result is a much clearer, more accurate understanding of the conditions needed for free-enterprise networks to produce the kind of sustainable vitality everyone desires, one which enhances and reliably maintains the health and well-being of all levels of global civilization as well as the planet. ?? 2009 Elsevier B.V. All rights reserved.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}
In a previous paper (Ulanowicz, Goerner, Lietaer, and Gomez, 2009), we combined thermodynamic, network, and information theoretic measures with research on real-life ecosystems to create a generalized, quantitative measure of sustainability for any complex, matter/energy flow system. The current paper explores how this metric and its related concepts can be used to provide a new narrative for long-term economic health and sustainability. Based on a system's ability to maintain a crucial balance between two equally essential, but complementary factors, resilience and efficiency, this generic explanation of the network structure needed to maintain long-term robustness provides the missing theoretical explanation for what constitutes healthy development and the mathematical means to differentiate it quantitatively from mere growth. Matching long-standing observations of sustainable vitality in natural ecosystems and living organisms, the result is a much clearer, more accurate understanding of the conditions needed for free-enterprise networks to produce the kind of sustainable vitality everyone desires, one which enhances and reliably maintains the health and well-being of all levels of global civilization as well as the planet. ?? 2009 Elsevier B.V. All rights reserved.
3.
Ulanowicz R E; Goerner S J; Lietaer B; Gomez R
Quantifying Sustainability: Appendix D Journal Article
In: Ecological Complexity, vol. 6, iss. 1, pp. 27-36, 2009.
@article{Ulanowicz2009a,
title = {Quantifying Sustainability: Appendix D},
author = {Robert E. Ulanowicz and Sally J. Goerner and Bernard Lietaer and Rocio Gomez},
url = {https://bernard-lietaer.org/wp-content/uploads/2022/07/2009-Quantifying-Sustainability-Appendix-D-Ulanowicz-et-al-annotated.pdf},
doi = {10.4018/978-1-60960-531-5.ch004},
year = {2009},
date = {2009-01-01},
urldate = {2009-01-01},
journal = {Ecological Complexity},
volume = {6},
issue = {1},
pages = {27-36},
keywords = {},
pubstate = {published},
tppubtype = {article}
}
4.
Ulanowicz R E; Goerner S J; Lietaer B; Gomez R
Quantifying sustainability: Resilience, efficiency and the return of information theory Journal Article
In: Ecological Complexity, vol. 6, iss. 1, pp. 27-36, 2009, ISSN: 1476945X.
@article{Ulanowicz2009,
title = {Quantifying sustainability: Resilience, efficiency and the return of information theory},
author = {Robert E. Ulanowicz and Sally J. Goerner and Bernard Lietaer and Rocio Gomez},
url = {http://linkinghub.elsevier.com/retrieve/pii/S1476945X08000561https://bernard-lietaer.org/wp-content/uploads/2022/07/2009-Quantifying-sustainability-Resilience-efficiency-and-the-return-of-information-theory-Ulanowicz-et-al-annotated.pdf},
doi = {10.1016/j.ecocom.2008.10.005},
issn = {1476945X},
year = {2009},
date = {2009-01-01},
urldate = {2009-01-01},
journal = {Ecological Complexity},
volume = {6},
issue = {1},
pages = {27-36},
abstract = {Contemporary science is preoccupied with that which exists; it rarely accounts for what is missing. But often the key to a system's persistence lies with information concerning lacunae. Information theory (IT), predicated as it is on the indeterminacies of existence, constitutes a natural tool for quantifying the beneficial reserves that lacunae can afford a system in its response to disturbance. In the format of IT, unutilized reserve capacity is complementary to the effective performance of the system, and too little of either attribute can render a system unsustainable. The fundamental calculus of IT provides a uniform way to quantify both essential attributes - effective performance and reserve capacity - and results in a single metric that gauges system sustainability (robustness) in terms of the tradeoff allotment of each. Furthermore, the same mathematics allows one to identify the domain of robust balance as delimited to a "window of vitality" that circumscribes sustainable behavior in ecosystems. Sensitivity analysis on this robustness function with respect to each individual component process quantifies the value of that link "at the margin", i.e., how much each unit of that process contributes to moving the system towards its most sustainable configuration. The analysis provides heretofore missing theoretical justification for efforts to preserve biodiversity whenever systems have become too streamlined and efficient. Similar considerations should apply as well to economic systems, where fostering diversity among economic processes and currencies appears warranted in the face of over-development. textcopyright 2008 Elsevier B.V. All rights reserved.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}
Contemporary science is preoccupied with that which exists; it rarely accounts for what is missing. But often the key to a system's persistence lies with information concerning lacunae. Information theory (IT), predicated as it is on the indeterminacies of existence, constitutes a natural tool for quantifying the beneficial reserves that lacunae can afford a system in its response to disturbance. In the format of IT, unutilized reserve capacity is complementary to the effective performance of the system, and too little of either attribute can render a system unsustainable. The fundamental calculus of IT provides a uniform way to quantify both essential attributes - effective performance and reserve capacity - and results in a single metric that gauges system sustainability (robustness) in terms of the tradeoff allotment of each. Furthermore, the same mathematics allows one to identify the domain of robust balance as delimited to a "window of vitality" that circumscribes sustainable behavior in ecosystems. Sensitivity analysis on this robustness function with respect to each individual component process quantifies the value of that link "at the margin", i.e., how much each unit of that process contributes to moving the system towards its most sustainable configuration. The analysis provides heretofore missing theoretical justification for efforts to preserve biodiversity whenever systems have become too streamlined and efficient. Similar considerations should apply as well to economic systems, where fostering diversity among economic processes and currencies appears warranted in the face of over-development. textcopyright 2008 Elsevier B.V. All rights reserved.
5.
Lietaer B; Ulanowicz R E; Goerner S J
Options for managing a systemic bank crisis Journal Article
In: Sapiens, vol. 2, iss. 1, pp. 1-15, 2009, ISSN: 1993-3819.
@article{Lietaer2009,
title = {Options for managing a systemic bank crisis},
author = {Bernard Lietaer and Robert E. Ulanowicz and Sally J. Goerner},
url = {http://sapiens.revues.org/747https://bernard-lietaer.org/wp-content/uploads/2022/07/2009-Options-for-managing-a-systemic-bank-crisis-Lietaer-Ulanowicz-Goerner2-annotated.pdf},
issn = {1993-3819},
year = {2009},
date = {2009-01-01},
urldate = {2009-01-01},
journal = {Sapiens},
volume = {2},
issue = {1},
pages = {1-15},
abstract = {The on-going financial crisis results not from a cyclical or managerial failure, but from a structural one: more than 96 other major banking crises occurred over the past 20 years, and these crashes have happened under very different regulatory systems and at different stages of economic development. So far, conventional solutions are being applied?nationalization of the problem assets (as in the original Paulson bailout) or nationalization of the banks (as in Europe). These solutions only deal with the symptoms and not the systemic cause of today?s banking crisis. Similarly, the financial re-regulation that will be on everybody?s political agenda will, at best, reduce the frequency of such crises, but not avoid their re-occurrence. Better solutions are urgently needed because the last breakdown of this magnitude, the Great Depression of the 1930s, ended up in a wave of fascism and World War II. In this paper, we describe a recent conceptual breakthrough?based on the functioning of balanced ecosystems? that shows that all complex systems, including our monetary and financial ones, become structurally unstable whenever efficiency is overemphasized at the expense of diversity, interconnectivity and the crucial resilience they provide. The surprising insight from a systemic perspective is that sustainable vitality involves diversifying the types of currencies and institutions and introducing new ones that are designed specifically to increase the availability of money in its prime function as a medium of exchange, rather than for savings or speculation. Additionally, these currencies are expressly designed to link unused resources with unmet needs within a community, region or country. These currencies are know as complementary because they do not replace the conventional national money, but rather, operate in parallel with it. We propose that a systemic understanding and technical solution are now available that would ensure that such crashes become a phenomenon of the past. The most effective way for governments to support such a strategy of a more diverse and sustainable monetary ecology would be to accept a well-designed, robust complementary currency in partial payment of taxes during a period when banks are not in a position to fully finance the real economy. The choice of a complementary currency reflects both a technical issue (robustness and resilience against fraud) and a political one (what type of programs are desirable to support). A good candidate for consideration would be a professionally run business-to-business (B2B) complementary currency based on the model of the WIR system. This currency has been successfully operational for 75 years in Switzerland, involving a quarter of all the businesses in that country. Formal econometric analysis has proven that the WIR acts as a significant counter-cyclical stabilizing factor that explains the proverbial long-standing stability of the Swiss economy.},
keywords = {},
pubstate = {published},
tppubtype = {article}
}
The on-going financial crisis results not from a cyclical or managerial failure, but from a structural one: more than 96 other major banking crises occurred over the past 20 years, and these crashes have happened under very different regulatory systems and at different stages of economic development. So far, conventional solutions are being applied?nationalization of the problem assets (as in the original Paulson bailout) or nationalization of the banks (as in Europe). These solutions only deal with the symptoms and not the systemic cause of today?s banking crisis. Similarly, the financial re-regulation that will be on everybody?s political agenda will, at best, reduce the frequency of such crises, but not avoid their re-occurrence. Better solutions are urgently needed because the last breakdown of this magnitude, the Great Depression of the 1930s, ended up in a wave of fascism and World War II. In this paper, we describe a recent conceptual breakthrough?based on the functioning of balanced ecosystems? that shows that all complex systems, including our monetary and financial ones, become structurally unstable whenever efficiency is overemphasized at the expense of diversity, interconnectivity and the crucial resilience they provide. The surprising insight from a systemic perspective is that sustainable vitality involves diversifying the types of currencies and institutions and introducing new ones that are designed specifically to increase the availability of money in its prime function as a medium of exchange, rather than for savings or speculation. Additionally, these currencies are expressly designed to link unused resources with unmet needs within a community, region or country. These currencies are know as complementary because they do not replace the conventional national money, but rather, operate in parallel with it. We propose that a systemic understanding and technical solution are now available that would ensure that such crashes become a phenomenon of the past. The most effective way for governments to support such a strategy of a more diverse and sustainable monetary ecology would be to accept a well-designed, robust complementary currency in partial payment of taxes during a period when banks are not in a position to fully finance the real economy. The choice of a complementary currency reflects both a technical issue (robustness and resilience against fraud) and a political one (what type of programs are desirable to support). A good candidate for consideration would be a professionally run business-to-business (B2B) complementary currency based on the model of the WIR system. This currency has been successfully operational for 75 years in Switzerland, involving a quarter of all the businesses in that country. Formal econometric analysis has proven that the WIR acts as a significant counter-cyclical stabilizing factor that explains the proverbial long-standing stability of the Swiss economy.