Encyclopedia > Freigeld

  Article Content

Freigeld

In the theory of Freiwirtschaft, Freigeld (German for free money) is a monetary (or exchange) unit. It has several special properties:

  • It is maintained by a monetary authority to be spending power stable (no inflation or deflation) by means of printing more money or withdrawing money from circulation
  • It is cash flow safe (a scheme will be put in place to ensure that the money is returned into the cash flow - for example, by requiring stamps to be purchased and attached to the money to keep it valid)
  • It is convertible into other currencies
  • It is localized to a certain area

The name results from the idea that there is no incentive to store the money as it will automatically lose its value after some time. It is claimed that as a result, interest rates will drop to almost zero.

External Links



All Wikipedia text is available under the terms of the GNU Free Documentation License

 
  Search Encyclopedia

Search over one million articles, find something about almost anything!
 
 
  
  Featured Article
Lake Ronkonkoma, New York

... Ronkonkoma, New York - Wikipedia <<Up     Contents Lake Ronkonkoma, New York Lake Ronkonkoma is a town located in Suffolk County, New York. As of ...

 
 
 
This page was created in 26.1 ms