THE IMPACT OF COMPLEMENTARY CURRENCY SYSTEMS ON THE ECONOMY

Abstract

Throughout the nineteenth and twentieth centuries, the majority of experiments with complementary currencies occurred during periods of crisis and economic instability. During these times, individuals turned to such currencies primarily for their protective functions. It is noteworthy that discussions about alternative currencies often emphasize the ethical and political dimensions of the phenomenon. Economists often categorize them as "forms of modern monetary competition" and tools contributing to the establishment of alternative currencies, fostering what is termed as economic democracy. This subject is inherently controversial, raising sensitive issues such as local economic patriotism. One crucial aspect that emerges in the exploration of alternative currencies is the requirement for trust. Building trust among users is challenging but essential for the establishment of an extensive network.

Keywords

• complementary currency systems
• monetary alternatives
• local currency.