The re-birth of local currencies: Some key factors in making 'funny money' work (Wisconsin, Oregon, Ohio, California)

The mobility and convenience of federal dollars become liabilities when money leaves a community before it has had a chance to circulate locally. In response, community organizers across the U.S. have begun circulating distinct currencies that are used by local residents in exchange for goods and services. The geographical boundaries of these de-centralized monetary systems limit the “leakage” of local wealth, while the barter style creates new economic opportunities for residents and generates increased activity for existing businesses. However, efforts to sustain these local currencies have met with mixed results. In this thesis, I present case studies of six different communities where local currency systems have been initiated within the past ten years, in order to identify significant factors in the systems' successes and failures. The discussion of findings may assist organizers in their efforts to establish viable local currencies.