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Hayek theorised this in 'The Denationalization of Money'. When government currencies become less stable, less valuable. Private, competing currencies can become
by vegancap 11y ago
Hayek theorised this in 'The Denationalization of Money'. When government currencies become less stable, less valuable. Private, competing currencies can become a medium of exchange free from that. We're starting to see this as many of the national currencies have been flagging over the years. Zimbabwe is a classic example of this also.
- TorKlingberg 11y agoI'd say this is very different. The Bristol Pound is pegged to the Sterling. It's really not about mistrust of the government, but rather an attempt to keep profits local and encourage people to use smaller businesses.
- vegancap 11y agoThat's very true, but it is a private currency and part of that is individuals and private businesses can agree upon their own set of uses. Such as profits within one city in this case. You're right that it's not currency competition in terms of value, but I guess it is in terms of use