A Community Currency is often used as synonym for complementary currency, local currency, regional currency, alternative currency, auxiliary currencies, and private currencies. The debate is not easy to solve, since the words have different meanings to different people. All are currencies that have different designs and serve different purposes than conventional money. They depart from the notion that money is essentially a human invention and instrument to influence the relations between citizens and organizations. A solid theoretical framework legitimizes this idea and in the past hundred years a lot of experimentation and experience was picked up with realizing social goals by the implementation of community currencies.
- Community Currency describes currencies that are used by groups with a common bond, like members of a locality, or association.
- Complementary currency describes currencies that exists as a supplement to our conventional (national) money. “A complementary currency (…) is an agreement to use something other than legal tender (i.e. national money) as a medium of exchange, with the purpose to link unmet needs with otherwise unused resources” (Lietaer & Hallsmith 2006: 2).
- Alternative currency is often used, but in essence this term is deceitful in many cases, as many currencies are designed to be complementary, and not to concur with- or to substitute conventional currencies.
- Local currency is a Community Currency used in a locality. If this locality is larger, the word regional currency is often used.
- Private currencies emphasizes that the currency is issued by individuals, businesses or NGOs as opposed to ordinary currency issued under the authority of the government.
- Auxiliary currencies is far less applied, (see for example Douthwaite & Wagman 1999) as synonym of community currencies.
In economics, a local currency, in its common usage, is a currency not backed by a national government (and not necessarily legal tender), and intended to trade only in a small area. As a tool of fiscal localism, local moneys can raise awareness of the state of the local economy, especially among those who may be unfamiliar or uncomfortable with traditional bartering. These currencies are also referred to as community currency, and are a form of alternative currency or complementary currency. They encompass a wide range of forms, both physically and financially, and often are associated with a particular economic discourse.
Other articles related to "local currency, currency, local":
... Moody’s first downgraded its Local Currency Deposit Rating to Baa1 and then downgraded the bank’s Financial Strength Rating to a C- from a C ... a possible downgrade of the Bank’s current Financial Strength Rating as well as its local currency long- and short-term deposit ratings ... ratings to 'BB' from 'BB+' noting the ratings are constrained by the local currency ratings on the sovereign ...
... reasons The government sets ("pegs") the local currency at some arbitrary level to another currency that does not reflect its true market value ... makes it difficult or illegal for its citizens to own much or any foreign currency ... The government taxes exchanging the local currency with other currencies, either in one direction or both (e.g ...
... There has been a tremendous surge in the use of local currencies over the past two decades ... Today there are over 2,500 different local currency systems operating in countries throughout the world ... Since 2002 there has been an upsurge in local currency experiments particularly payment voucher-based systems that are exchangeable with the national ...
... In 2011, a local currency called CDD was created for use exclusively in the Cidade de Deus, to encourage inhabitants to spend more locally, thus boosting the ... The currency is subsidized ... value is indexed to about 20% higher than the national currency, the Brazilian real ...
... A Dual Currency Deposit (“DCD”) is a foreign exchange linked deposit in which the principal can be repaid after being converted into the alternative currency at the ... If an investor has a view on the initial investment currency a Dual Currency strategy allows the investor to benefit from higher returns ... At maturity, if the local currency is weaker than the strike rate funds will be redeemed in the local currency ...
Famous quotes containing the words currency and/or local:
“There is no legislationI care not what it istariff, railroads, corporations, or of a general political character, that all equals in importance the putting of our banking and currency system on the sound basis proposed in the National Monetary Commission plan.”
—William Howard Taft (18571930)
“Wags try to invent new stories to tell about the legislature, and end by telling the old one about the senator who explained his unaccustomed possession of a large roll of bills by saying that someone pushed it over the transom while he slept. The expression It came over the transom, to explain any unusual good fortune, is part of local folklore.”
—For the State of Montana, U.S. public relief program (1935-1943)