Economic Advantages of Community Currencies

Sarah Zeller
Additional contact information
Sarah Zeller: Faculty of Business and Economics, Technische Universität Dresden, 01062 Dresden, Germany

JRFM, 2020, vol. 13, issue 11, 1-11

Abstract: Community currencies are only sometimes economically advantageous. We focus on seasonal changes in money supply and assume that community currencies stabilize the money supply in a local community. This leads to additional transactions during seasons of insufficient supply of national currency. We hypothesize community currencies are therefore economically advantageous in a surrounding of seasonally insufficient money supply. We test the hypothesis qualitatively with two case studies, the German Chiemgauer and the Kenyan Sarafu Credit. We find community currencies are only economically advantageous in an environment of insufficient liquidity.

Keywords: community currencies; money supply; seasonal liquidity; complementary currencies (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.mdpi.com/1911-8074/13/11/271/pdf (application/pdf)
https://www.mdpi.com/1911-8074/13/11/271/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jjrfmx:v:13:y:2020:i:11:p:271-:d:439410

Access Statistics for this article

JRFM is currently edited by Ms. Chelthy Cheng

More articles in JRFM from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().