I am writing this from Amsterdam where I am meeting representatives from local government and other think tanks to share ideas and practice about ‘community currencies’. The question which interests us is how can we keep money circulating in our local economies while at the same time incentivising and rewarding positive social and environmental action? One of the problems with our current monetary system is that it fails to channel money effectively. A key function of the system, alongside providing a mechanism for exchange and for savings and investment, is that it provides a common unit for measuring the value of goods and services. However, due to the flawed way in which this currently takes place our monetary system does little to encourage pro-environmental behaviours and policies, or stimulate an active civil society. But it has also failed on its own terms. Recent events have exposed the lack of resilience … (To read the full article, subscribe below)
Nicola Steuer is programme director at the New Economics Foundation.
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