SIMEC

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The SIMEC ( acronym for sim bolo ec onometrico di valore indotto , Italian for “econometric symbol for the generated value”) is an experimental currency that was introduced in July 2000 in the Italian town of Guardiagrele , but only lasted a few months . Because of the rarity of such (practical) economic experiments , SIMEC nevertheless attracted some public interest at the time of its introduction.

background

Responsible behind the introduction of the SIMEC was Giacinto Auriti (1923-2006), an emeritus professor of law at the University of Teramo , who called his currency, "money in the property of the people" (as opposed to the official notes that, according Auriti by the issuing and interest systems are effectively owned by the issuing central bank ). The Latin saying Non Bene Pro Toto Libertas Venditur Auro (transl. "Not even all the gold in the world can sell freedom") was printed in Latin . The currency was the practical implementation of a theory and philosophy that Auriti had worked on for many years. Auriti used his private fortune for the experiment, and numerous volunteers helped with the issue.

While the SIMEC / Lire issue price was still one to one in July, the value ratio (and thus the exchange rate ) was one to two just a few days later. This rapid increase is likely to have a simple reason: Auriti had assured the dealers in its advertising attempts for participation in the currency that a SIMEC would be changed back to two lire at any time. A total of seven different notes (500, 1000, 2000, 5000, 10,000, 50,000, 100,000) were printed. According to information from Auriti, 2.5 billion SIMECs were in circulation at the peak in mid-August 2000.

The action received some attention from the international press and sparked a brief euphoria in the city. Of the 400 shops in Guardiagrele, Auriti was able to convince 39 to participate at the beginning, later the number rose to 70 companies and dealers according to its own information. At the same time, the introduction of the new currency naturally led to some problems in local economic life, which divided the city into supporters and opponents and caused turmoil in the local traders' association. The problems eventually led the opponents to lodge a complaint with the financial supervisory authority, which led to the banknotes being confiscated in mid-August - which took place amid loud protests from citizens. In October 2000, however, the SIMEC banknotes had to be released again after the Pro-SIMEC representatives had been acquitted in court.

The Palazzo Auriti with the banner that is reminiscent of the SIMEC. At the time, the banknotes were issued in the main door of the building.

Even at the time of issue, the banknotes were a popular object of numismatists . Auriti allegedly lost a not insignificant part of his fortune in the experiment, on the one hand for the production of the banknotes, on the other hand through the loss he incurred due to the difference between the issue and guaranteed redemption price.

Ultimately, this exchange rate difference was nothing more than a subsidization of the currency. These subsidies were also the main reason for the “boom” in the city: Many citizens liked the SIMEC at that time v. a. that everything was only “half as expensive” as usual, and that they “could now afford things that they otherwise couldn't buy”. However, this situation was not a product of the high acceptance of the new currency, but simply the result of subsidies from Auriti's private assets - the products weren't really only half as expensive, but subsidized: Auriti effectively paid for almost 50% of every product purchased with SIMEC.

In Guardiagrele, a banner reminiscent of the SIMEC hangs in the main square at Palazzo Auriti (as the name suggests, the house has belonged to the Auriti family for generations). The banner says Il SIMEC è proprietà del portatore - L'Euro, di chi è? (“The SIMEC is the property of the owner - whose property is the euro?”).

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