Publications

Policy Note 2016/1 | January 2016

Complementary Currencies and Economic Stability

A complementary currency circulates within an economy alongside the primary currency without attempting to replace it. The Swiss WIR, implemented in 1934 as a response to the discouraging liquidity and growth prospects of the Great Depression, is the oldest and most significant complementary financial system now in circulation. The evidence provided by the long, successful operation of the WIR offers an opportunity to reconsider the creation of a similar system in Greece.

The complementary currency is a proven macroeconomic stabilizer—a spontaneous money creator with the capacity to sustain and increase an economy’s aggregate demand during downturns. A complementary financial system that supports regional development and employment-targeted programs would be a U-turn toward restoring people’s purchasing power and rebuilding Greece’s desperate economy.

Related Publications


Publication Highlight

Book Series
Financial Regulation in the European Union
Edited by Rainer Kattel, Jan Kregel, and Mario Tonveronachi

November 2015

Quick Search

Search in: