Urgent Evoke

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Local Currencies - About 30 also in Germany!

Money is convenient, because it can stand for any goods and simplifies its exchange. But there is one problem. The imprinted worth of the notes by the state persists, but the worth of goods, which you are able to buy with it, fades. Money only computes, if there is something to exchange. It has to be created where useful production goods are developed and it has to be withdrawn from circulation, if the goods become useless. New money should only be printed, if the useless production goods are replaced by new ones. In this way the worth of money can be checked.

To realize this, I found some attempts. It is necessary, that money is limited in time. This duration is equivalent to its respective production good. One attempt gives Silvio Gesell, who wanted to boost monetary circulation by devaluation of money – aging money. The other attempt comes from Rudolf Steiner. In his theory, money is replaced in the right moment to prevent fall in value. This kind of money is limited.

These attempts are applicable in many local currencies. Actually, I did not know that those kinds of currencies even exist - especially here in Germany. The so called “Regiogeld” is an own currency which is valid in local areas. Of course the “Regiogeld” is only a complementary currency to the Euro. In Germany, there are about 30 initiatives which use the Gesell-tax, meaning devaluation of money (about 3-4% per year). With this tax local social projects are supported.

One famous local currency in Germany is the Chiemgauer.

Source: Wikipedia

 

In my opinion this is an interesting model to stoke up monetary circulation. But you also have to think about the disadvantage that this model establishes an internal trade barrier, if only this local currency was accepted.

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