Regional currency

from Wikipedia, the free encyclopedia

A regional currency , also called regional money or local currency , is a local complementary currency that is used within the regional currency area as a means of payment, investment and gifts between consumers, providers and associations.

functionality

features

Six characteristics are typical for regional funds:

  • Regional linkage of the means of payment: supra-regional use is not possible or limited in advanced systems.
  • Complementary to the legal tender without an acceptance obligation on the part of the company
  • Competition with other payment media such as B. cash, girocard, credit card, voucher, bonus card
  • The national currency is usually the frame of reference for measuring the value (e.g. 1 region = 1 euro). In the event of high inflation, alternatives are discussed and tried out in individual cases
  • Monetary policy control both via the amount emitted and the speed of circulation of regional money with the help of instruments such as negative interest, expiry date or social control.
  • Low sales compared to sales made in the region in local currency.

cover

In order to give the regional money a value, it is covered by deposited currencies or by performance promises. Most regional funds in Germany are covered by euros (regional funds in Switzerland by Swiss francs) or by promises of benefits. The issue takes place by exchanging euros at a ratio of 1: 1. The exchange is guaranteed at a fixed rate (usually approx. 95%). Newer regional funds are covered by performance guarantees or acceptance obligations of the participating companies. With these, the issue takes place in connection with the contractual obligation to accept the regional money. The emission is thus similar to a joint issue of vouchers by the companies. With the regional money you can buy services from all participants. The exchange rate in euros cannot be guaranteed and is developing on the market. Service-covered regional monies are clearing systems based on mutual credit. Functionally, they partly correspond to the known barting systems , but usually do not charge a turnover fee.

Legal position

In Germany , the legal admissibility of regional money has not been conclusively clarified. The freedom of contract , according to which contractual partners can freely determine the characteristics of their agreements, is cited in order to put the issuance of regional money, for example by founding a corresponding association, on a private law basis. However, the protection of freedom of contract ends if the agreements break laws.

Sales in regional money are subject to sales tax, provided they go beyond the immediate circle of acquaintances, comparable to the receipt (in the euro area ) of amounts in US dollars or Czech crowns .

However, the non-payment of sales tax is not to be charged to the issuer of the regional money. He breaks the currency monopoly, a monopoly on issuing banknotes that the European Central Bank and the Deutsche Bundesbank have under the EC Treaty .

rating

advantages

The aim of regional money systems is to promote and stabilize the regional economy. Due to the small area in which the regional money is used, the purchasing power for transactions carried out with it remains in the region instead of migrating abroad or to the financial markets . This is intended to counteract the relocation of jobs abroad.

The monetary system is an important part of people's social environment. Being able to influence the conditions of this environment in its essential aspects within the most manageable structures possible is a basic requirement for democratic engagement. In this sense, regional monetary systems correspond to the principle of subsidiarity . They stand in the way of the assertion that there is no political alternative and are intended to refute the assertion of global financial policy constraints in the sense of Thatcherism by expanding people's democratic scope for action.

The proponents hope to strengthen regional networking and more direct contact between manufacturers and end sellers.

Regionality / spatial formation / fair trade

According to Leopold Kohr's slogan "Small is beautiful", regional money initiatives try to create regions with manageable and transparent cash flows. What can be seen from the highest mountain peak in the area, people should, so to speak, shop, invest and enjoy life. The global exchange of goods, on the other hand, is limited to what is necessary, sensible and special, to a sensible balance between globalization and regionalization according to the motto “laptops and lederhosen”. Instead of money disappearing into obscure channels of corporations and markets into the anonymous and incomprehensible, it brings consumers, savers and entrepreneurs together in its regionalized form. The supraregional exchange is viewed positively by supporters of regional money and is explicitly promoted if the production and trade conditions are ecological, social and fair. Experts estimate the possible share of added value from the region to be at least 50%. According to the proponents, the exact optimum between the quantitative economies of scale of globalization and the qualitative value effects of regionalization depends on the respective conditions in the region and the advantages and disadvantages of free trade.

Theory references: Leopold Kohr , Ernst Friedrich Schumacher , Paul A. Samuelson , Niko Paech

Negative interest rate / circulation protection / liquidity fee

If the real interest rate is above the real growth rate, some of the regional money advocates fear accumulation effects in financial assets. In order to prevent the excessive concentration of financial assets in the hands of a few, some of the initiatives apply a negative interest rate to the regional money issued. The negative interest counteracts hoarding of money and speculation in the financial markets. If a functioning financial market with savings, credit and investment opportunities develops in the regional money system, lower-interest loans can be expected according to this approach. Assuming two percent real interest rate and zero growth, a regional money loan would be two percent below the market interest rates for euro loans. Proponents argue that by minimizing interest rates, sustainable investments in regenerative energies, climate protection and the like can become profitable. The negative interest rate on money is seen as a building block to minimize the growth pressure inherent in the financial system.

Theory references: Silvio Gesell , John Maynard Keynes , Irving Fisher , Willem Buiter , Taylor rule

disadvantage

Both the regional limitation of the circulation of money and the circulation security fee are viewed critically:

Products that come from outside the currency area cannot be paid for with regional money. To own products to sell in other regions or to pay from outside imported goods, is either a complementary currency necessary or an opportunity for exchange between different currencies - for example, on inter-regional clearing houses ( clearing houses ). However, this causes transaction costs and thus acts like a tariff on products that are "imported" from outside the region. This is precisely the point of regional money, but it brings with it the usual negative tariff effects (e.g. trade restrictions, decline in producer and consumer surplus ).

If the regional money is designed as a complementary currency, these disadvantages for extra-regional companies are mitigated. However, the question then arises as to the meaning of the regional money system. For the citizens, the regional money then offers less benefit than the supraregional money, since you can pay regional providers with both currencies, but only the supraregional money is suitable as a means of payment for supraregional providers. It is therefore likely that the regional money will mainly be requested by those households that would support regional providers anyway.

The benefits of a circulation security fee are also being critically questioned. The aim of the circulation security fee is to strengthen the function of money as a means of payment compared to its function as a store of value - in other words, to give preference to consumption over saving . On the one hand, according to critics, this represents a restriction of the economic agents' freedom of action and decision-making. On the other hand, the circulation security fee slows down the accumulation of money, which mainly affects small savers, since the accumulation of capital in the form of investments in securities or real estate is not of the circulation security fee is affected.

On the other hand, critics of regional money systems (there is also a discourse on this topic within the movement, essentially between an economic and a political point of view) complain that, contrary to the actual intention, they do not contribute to limiting the criticized quantitative growth through the circulation security fee. The starting point here is again the preference for consumption over saving. According to neoclassical growth theory , consumer demand mainly provides short-term growth stimuli, while saving is essential for sustainable, long-term growth. However, according to Keynesian theory, short-term increases in demand can also have long-term welfare effects.

Furthermore, the use of regional money does not necessarily lead to a more environmentally friendly economy: It is true that regional production reduces the volume of transport and the associated environmental pollution. A possibly lower production efficiency of small, regional suppliers can put this effect into perspective. If, for example, the import of apples from New Zealand or South Africa in early summer is more environmentally friendly than the storage and cooling of domestic apples by then, the positive environmental effect of regional currencies can only be maintained if supply and demand not only prioritize regionality, but also seasonality.

history

The Physiocratic money - forerunner of Wara -Tauschbons (1919)
Back of a labor voucher from Wörgl, Austria 1932/33

The following historical free money experiments were implemented according to regional funds and partly models for the modern regional currencies:

  • The free money of Wörgl became best known in Austria on the initiative of Mayor Michael Unterguggenberger in 1932/33. By using free money as a second currency, it was possible to stimulate the regional economy again and thus to significantly alleviate the effects of the global economic crisis . It was based on work vouchers issued by the community, which were covered by deposited schillings and provided with a monthly circulation security fee of 1 percent, i.e. 12 percent per year. It was banned after a short time under pressure from the Austrian National Bank.
How it works: A stamp with 1% of the value had to be stuck to the front every month.
  • Wära vouchers Erfurt , publisher: Tauschgesellschaft Erfurt 1931. Denomination 0.5; 1; 2, 5 and 10 years. Circulation security fee of 12 percent annually. (Photographs of Wära vouchers at the German Historical Museum (DHM) - front designed in Bauhaus style)
  • WÄRA in Schwanenkirchen near Deggendorf in the Bavarian Forest . The initiator was the mining engineer Max Hebecker .
  • Wära in Ulm (1931). Brand money with an annual depreciation of about 6 percent. Fig .: DHM
  • Geraer Tauscher (1931). Table money with an annual devaluation of about 20 percent. Fig .: DHM
  • Deposit receipts in Medias , Romania (1933). Table money with a monthly devaluation of 2 percent.
  • From the middle of the 12th century to the 14th century, bracteates were the predominant regional type of coin in almost the entire German-speaking region (with the exception of the Rhineland, Westphalia and the Middle Rhine region). In some regions the bracteates were called out at regular intervals (in Magdeburg in the 12th century several times a year), so they had to be exchanged for new bracteates money. There were z. B. to change three new coins for four old ones. The 4th coin withheld was called Schlaggeld and was often the only tax revenue of the mint owner (Renovatio Monetae)

present

Worldwide there are several hundred regional currencies with different concepts and characteristics. In Germany, the Chiemgau is the largest regional currency with a distribution in the districts of Rosenheim and Traunstein. The Regiogeld-Verband , based in Magdeburg, has around 30 active regional currencies in Germany, which are continuously updated on a map. Other examples are the Bristol Pound in Great Britain, the Sardex in Sardinia and the Banco Palmas in Brazil. More in the list of regional funds.

Congresses

Three “regional money congresses” took place in Prien am Chiemsee from 2003 to 2005 - with the rapid establishment of new regional money initiatives and a joint regional money association, the idea of ​​a “traveling congress” was born.

  1. Regional money congress: March 2003 in Prien am Chiemsee in the roof studio of the Waldorf school, 150 participants
  2. Regional Money Congress: From March 19 to 21, 2004 in Prien am Chiemsee in the Kleiner Kursaal, 200 participants
  3. Regional Money Congress: May 5th to 8th, 2005 in Prien am Chiemsee in the Großer Kursaal, 250 participants
  4. Regional Money Congress: September 30 to October 1, 2006 in the new university library building in Weimar, 300 participants
  5. Regional money congress: May 3 to 5, 2013 in the town hall in Traunstein for the 10th anniversary of the Chiemgau regional money, 400 participants

Furthermore:

  • “Complementary currencies in Europe” from July 19 to 22, 2004 in the Catholic Social Institute in Bad Honnef
  • International regional currency congress from August 18 to 21 , 2005 in Schrems in the Waldviertel (Austria)
  • "Second Money Congress" from October 30th to 31st, 2006 in St. Arbogast ( Vorarlberg , Austria)
  • Networking meeting of the Austrian complementary currency initiatives: April 21, 2007 and April 20, 2008 in St. Virgil , Salzburg
  • "Money Congress" in March 2012 in Köthen (Anhalt)

new technologies

The introduction of blockchain technology ( Bitcoin ) opens up new opportunities for regional money initiatives and parallel currencies. The money transfer, which is independent of banks, as well as the possibilities of creating money ( mining ) can establish independent economic cycles. However, the discussion and implementation options are only at the beginning.

literature

Movies

Radio

  • Thomas Gaevert : The Roland and the Urstromtaler - Out and about with a regional currency; Production: Südwestrundfunk 2012 - 25 minutes; First broadcast December 17, 2012, documentation for SWR2 Tandem
  • Thomas Gaevert: Regional money as an alternative to the euro? ; Magazine article, WDR5 morning echo - 3:10 minutes; Broadcast: May 3, 2013, 6.40 a.m.

See also

Web links

Commons : Regional Currencies  - Collection of images, videos and audio files
Commons : Regional currencies in Germany  - collection of images, videos and audio files
Wiktionary: Regional money  - explanations of meanings, word origins, synonyms, translations

Individual evidence

  1. ↑ Art. 106 (1) sentence 3, founding agreement
  2. ↑ Art. 16 Para. 1 S. 3, Statute of the European System of Central Banks and the European Central Bank
  3. ↑ Art. 10 p. 2 VO (EG) 974/98 (ABl. EG No. L 139/1), introduction of the euro in the by VO (EG) 2596/2000 (ABl. EG No. L 300/2) amended version
  4. ↑ Section 14, Paragraph 1, Sentence 2, Bundesbank Laws
  5. ↑ Süddeutsche Zeitung of July 13, 2008
  6. ↑ Hans-Joachim Werner: History of the Free Economy Movement , Münster / New York 1989, p. 42
  7. ↑ The Sardex factor. In: Financial Times. Retrieved October 14, 2016 .
  8. ↑ Economic development through blockchain technology | (Crypto contribution 3) | kowabit. Retrieved April 17, 2017 .
  9. ↑ Hans von der Hagen: Money can strike back brutally. Süddeutsche Zeitung , April 6, 2010, accessed on October 2, 2010 (Interview with director Strigel on his film The appearance is deceptive ).