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Regionalwährungen in Deutschland: Lokale Konkurrenz für den Euro?

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  • Rösl, Gerhard

Abstract

In a surprisingly growing number of regions in Germany private "regional currencies" are issued as a cash substitute for the euro. Currently, these regional currencies are conceived almost exclusively as Schwundgeld (depreciative currency), which loses value on a predetermined timescale. This loss of value is intended to encourage the money owners to spend their money quickly in order to boost local demand. The paper shows that the issuance of unofficial parallel currencies is not a fundamentally new phenomenon neither in Germany nor in other European countries. The theoretical assumptions of the Schwundgeld concept (Silvio Gesell (1862 – 1930)) are highly flawed and suboptimal from a welfare-theoretical perspective. However, the current economic welfare losses resulting from the issuance of Schwundgeld are negligibly small.

Suggested Citation

  • Rösl, Gerhard, 2006. "Regionalwährungen in Deutschland: Lokale Konkurrenz für den Euro?," Discussion Paper Series 1: Economic Studies 2006,43, Deutsche Bundesbank.
  • Handle: RePEc:zbw:bubdp1:5171
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    References listed on IDEAS

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    1. Timberlake, Richard H., 1981. "The Significance of Unaccounted Currencies," The Journal of Economic History, Cambridge University Press, vol. 41(04), pages 853-866, December.
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    4. Thomas F. Cooley & Gary D. Hansen, 1991. "The welfare costs of moderate inflations," Proceedings, Federal Reserve Bank of Cleveland, pages 483-518.
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    6. Timberlake, Richard H, 1987. "Private Production of Scrip-Money in the Isolated Community," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 19(4), pages 437-447, November.
    7. Sargent, Thomas J & Wallace, Neil, 1975. ""Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 241-254, April.
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    9. Lucas, Robert Jr., 1972. "Expectations and the neutrality of money," Journal of Economic Theory, Elsevier, vol. 4(2), pages 103-124, April.
    10. Tödter, Karl-Heinz & Ziebarth, Gerhard, 1997. "Price stability versus low inflation in Germany: An analysis of costs and benefits," Discussion Paper Series 1: Economic Studies 1997,03e, Deutsche Bundesbank, Research Centre.
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    More about this item

    Keywords

    Regionalwährungen; Regionalgeld; Parallelgeld; Gesell; Währungssubstitution; Schwundgeld; Freigeld; currency substitution; private money;

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General

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