Demurrage For Local Currency, Keeping Stroud Pounds Circulating

Demurrage according to Wikipedia:

In complementary currencies’ field, demurrage is a cost associated with owning or holding currency. It is sometimes referred to as a carrying cost of money. The term was used by Silvio Gesell. It is regarded by some as having a number of advantages over interest: while interest on deposits lead to discount the future and to place immediate gains ahead of long-term concerns, demurrage does the opposite, creating an incentive to invest in assets which lead to longer-term sustainable growth. Furthermore, demurrage acts like inflation, stimulating the circulation of the currency, encouraging economic activity, and increasing employment.

John-Paul Flintoff writing for the Timeonline (The Sunday Times) has a neat article on the Stroud Pounds and their Demurrage. “…Stroud pounds need to be stamped by 1 April if they’re to keep their value.”

Read the full article here.

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Tags: demurrage, Local currency, Stroud Pound