The Function of Local Currencies in Local Economic Development
The Bavarian ‘Chiemgauer Regiogeld’ and the ‘Kékfrank’ in Sopron
István Balázs Tóth
PhD student, University of West Hungary, Széchenyi István Doctorate School of Financial Management and Organisational Studies, Sopron
Published in: Public Finance Quarterly 2011/1 (p. 67-78.)
Summary: Complementary currencies refer to a monetary system that enhances regional economic activities and cooperations. The aim of this research is to provide an overview of and evaluate local currencies that are less known in Hungary from financial and regional economic aspects through two initiatives, one foreign initiative and one nascent Hungarian initiative. The author tries to find answers to questions concerning how local currencies serve social and economic development and what chances they have in our country. The analysis is interdisciplinary and based on case studies. The author emphasises the socio-political, regional essentials and legal background of the topic. The novelty of the study lies in the fact that no comprehensive publications have been issued in connection with local currencies earlier in Hungary that analyse them from different views of scientific fields. The comprehension of the mechanism and effects of the system can be a starting-point for experts who deal with the idea of establishing local currencies as well.
Keywords: local currency, regionalisation, Chiemgauer, Kékfrank
Journal of Economic Literature (JEL) kód: E42, F36, G20, N24, R51