Does Demurrage matter for Complementary Currencies?

Currency with demurrage is a theoretical concept for a reform of the monopolistic issued state money originated by Silvio Gesell. Until now it has never been implemented the way it was originally intended. Based on the theory of Irving Fisher and the practical experiences during the Great Depression a demurrage-based CC could be helpful as a temporary steering instrument during economic depressions to stimulate economic activity by increasing the velocity of money (of CC and indirectly of conventional money), probably only if issued state-wide. The level of the demurrage-rate of the local issued depreciated money seems to be (based on the available data) not crucial for the economic results within the meaning of usage, turnover and velocity.

Hugo Godschalk

To cite this article: Godschalk, H. (2012) ‘Does Demurrage matter for Complementary Currencies?’ International Journal of Community Currency Research 16 (D) 58-69  <> ISSN  1325-9547

IJCCR 2012 Godschalk