Thursday, April 14, 2011

Central bank warns of dangers of "local" currencies issued by municipalities

Editor's note: These currencies must be doing quite well to initiate propaganda against them by the Hungarian Central Bank. I do not know the specifics of these currencies referred to, however, most local currencies have more forge-proofing elements than national money, have more value than the destructive (backed by high interest debt) and inflation-prone national money, and I don't know how they could be less supportive of the local economy -that just doesn't make sense. Obviously a very short article that is unable to provide evidence of its claims. Three cheers for autonomous Sopron!

From the
April 14, 2011

There are several risks associated with so-called "local" currencies being issued by some municipalities in Hungary, the Hungarian National Bank has warned. Experts from the bank say they are easier to forge, have an uncertain value, and they do not support local economy.

A local currency was introduced in Sopron in 2009, while other regions and towns planning their own local currencies include Rábaköz, Pécs, Veszprém and Debrecen.

1 comment:

  1. If you want to find out what's going on with local currencies in Czechoslovakia / Hungary / Poland take a look at this recent research paper:

    Local exchange trade systems in the central-european postcommunistic countries