weblog #8 A Plan For Hard Times: Print Cash

According to A Plan For Hard Times: Print Cash, residents in Riverwest will print their own money to keep the area economy humming.

People in Riverwest decided to print their own local money as recession fears grow. The money can be used only in that area and has local landmarks instead of presidential portraits on it. Dozens of such systems flourished during the Great Depression. They emerged as a solution in order to against globalization by keeping wealth in local people’s hands. It is a very attractive and maybe useful idea when the economy looks so hopeless now. The method benefits residents through an exchange process. The money they print costs less than traditional dollars. And when businesses agree to value the local currency the same as the greenbacks, they also get a free stack to kick-start spending.

At first, it may sound like the consumption vouchers that will be provide later in Taiwan.
However, the differences are that their local money will increase in value but consumption vouchers won’t and consumption vouchers’ using has a time-limit which the other does not have. Nevertheless, there is one thing I am worrying about. Both of the ideas are producing money. Wouldn’t there be a problem of inflation? And then I think: maybe in the experience of the past this situation has never happened before.