Guillaume Vallet

A local money to stabilize capitalism: the underestimated case of the WIR

Abstract As a result of the current financial crisis, economists have paid increased attention to local monies designed in an effort to create a new kind of economy, as well as new ways to develop social links. This paper seeks to shed light on the WIR money, a local money that has been in existence in Switzerland since the 1930s. We argue that it provides a shield against crises for two significant and connected reasons. First, from a ‘horizontal’ perspective, the WIR is a coherent economic, as well as social, project that relies on the ‘melting money’ principle. Second, from a ‘vertical’ perspective, it is based on a banking model that is anchored to a specific ‘attitude’ designed to manage the monetary common good. The mix between these ‘horizontal’ and ‘vertical’ perspectives is likely to be insightful for other projects like the WIR.

‘Think twice’: using economics and sociology to understand monetary issues–The case of Switzerland

ABSTRACT This paper seeks to demonstrate to what extent an academic approach that borrows from economics and sociology is heuristic in terms of fully understanding monetary issues. Contrary to authors that consider money to be neutral, this article emphasizes that money is a ‘total social fact’. Hence, it focuses on three meanings of money through the theoretical framework of Schumpeter and various French institutionalists. It also focuses on the Swiss case, which is particularly relevant because money plays a significant role in order for such a country to foster prosperity and create social links. Finally, there is clearly a high usefulness of a pluralistic approach on the monetary issue for heterodox economists.

Rethinking economics for a pluralist approach

The global financial crisis that burst in 2008 seriously undermined economics from an epistemological, methodological as well as philosophical perspective. In this respect, the way we think and approach economics must be reconsidered afresh. In this chapter we will show, contrary to the normal evolution of mainstream economics, that there is an interest and even an urgency of opening economics to other disciplines. This is the case in particular with sociology, but also history, anthropology and political science. As we argue, pluralism allows for greater knowledge, which can only serve to reinforce the scientificity of economics.

Cooperation rather than competition in industrial organisations: Albion W. Small’s underestimated view

Abstract This article aims to present Albion W. Small’s underestimated view on labour relations in industrial organisations. A century ago, this sociologist, who also had a grounding in political economy, analysed the transformation of capitalism through a focus on the relationship between workers and capitalists. He offered some interesting proposals, stressing the need for the two factors of production to cooperate instead of competing. His approach may still be insightful today in rethinking the forthcoming challenges facing industrial organisations as well as capitalism, especially regarding the ontological nature of a firm associated with its governance issue.