LOCAL CURRENCY AS A METHOD OF ECONOMY INTENSIFICATION

Abstract

The article describes local currency as an additional means of payment functioning along with the national currency on a certain limited territory or within a certain community. The authors characterize this type of currencies, identify their aims and forms and analyze foreign and home experience of using them. The article puts forward a mechanism of local currency circulation by describing its key elements. In this case the combination of three main factors is necessary: participation of those who deal with production and consumption, support of local authorities and interaction with local banks and other finance and credit organizations. The authors advance a hypothesis about the beginning of the stage of transforming currency interactions, when horizontal ties between currencies give rise to vertical structure of these relations.

Keywords

• local currency
• small business
• entrepreneur
• customer
• resources
• economy intensification
• means of circulation