Why "demurrage"?
Hugo Godschalk
Last modified: 2011-02-15
Abstract
Headlines:
- Original concept of Silvio Gesell for a state-issued monopolistic national currency
- Overview of the historical development of Complementary Currencies (CC) based on demurrage until today (cash-based initiatives during the Great Depression in Germany, Austria, Switzerland, USA and Canada; premature prohibition in Europe; renaissance of demurrage in Europe, especially Regiogeld in Germany)
- Reasons behind the demurrage-concept for local money (past and present)
- Different kind of performance of demurrage (level & ways of charging)
- Case study: WIR-Franken in Switzerland as most successful and longstanding CC without demurrage
- Effects of Gresham´s law on the velocity of local money; case studies of stamp scrip during the Great Depression in the USA
- Preventing hoarding and improvement of velocity without demurrage
- Implementation of demurrage within cashless CC: Constraints to demurrage by regulation?
Full Text: Godschalk paper