A political party in Barcelona pledges to print local currency for the region..

Interesting article on money something Austrian school might be happy seeing.

In local Barcelona elections, one of the party has said it will print local currency on winning:

One of the main contenders in this weekend’s local elections in Barcelona, Spain’s second-largest city, recently made an eye-catching pledge: To create a new currency for the metropolitan area.

There have been a number of experiments with alternative currency in Europe, North America and elsewhere, including in the London neighborhood of Brixton with its flashy paper bills featuring local celebrities such as singer David Bowie and NBA Miami Heat player Luol Deng.

But Barcelona—with a metropolitan area of some 3.2 million people—would be the largest city council in the West to trial such a scheme if it were to go ahead, according to specialists in alternative currency.

Behind the proposal is Barcelona In Common, a coalition of left-wing parties that pollsters say could win the election. Under its plan, which is intended to boost small and medium-sized businesses, the city council would pay part of salaries and benefits in the proposed currency and accept the payment of local taxes in it.

Promoters of the idea of a Barcelona currency cite as a model an effort in Bristol, a city in the south west of England that launched an alternative currency in 2012. Under the scheme, people can purchase Bristol Pounds at a one-to-one rate with sterling and spend it with one of more than 700 businesses. The city’s mayor has since its inception taken his full salary in the new money, the city council says. There is currently about £460,000 ($714,000)  worth in circulation, according to promoters.

The idea of alternative currencies has a long history, but there has been a flurry of interest in the wake of the 2008 global recession. There are potentially more than 3,000 forms of local money in use around the world, says Community Currencies in Action, a global partnership promoting such schemes, though it adds it’s difficult to tally precise figures.

This is what leads to competition in the currency space as well which existed long ago. Now most countries have a single currency issued by fiat from the central govt and signed by central bank (and we think latter are independent). The idea of competing currency has been removed from textbooks and is not even considered worth discussing.

Most books talk of competition in all goods and services and limited regulation. But in money matters none of this applies. There should be a central currency and a big central bank intervening and setting interest rates in the economy. I mean atleast one should be discussing the possibility of having multiple currencies..

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