An idea of the late FA Hayek was that people could use different currencies within the same jurisdiction and break away from the idea that if you lived in country A or B, you could only use one currency within A or B and never use more than one in each place. The idea of “monopoly money” is so ingrained that to broach the idea is to incur looks of incredulity. (“But surely that would be messy!”) Now, I have looked quite a bit at the idea of competing currencies and there strikes me as being nothing that is implausible about such an idea as such. This story in the Daily Telegraph is therefore most interesting:
If you live in the Bavarian region of Chiemgau, you can exist for months at a time in a euro-free zone of hills and lakes with a population of half a million people. Restaurants, bakeries, hairdressers and a network of supermarkets will accept the local currency: the Chiemgauer.
Notes are exchanged freely like legal tender. You can even use a debit card. Petrol stations are still a problem, but biofuel outlets are signing up. Dentists are next.
The Chiemgauer is one of 16 regional currencies that have sprung into existence across Germany and Austria since the launch of the euro five years ago.
Article worth reading here from time back by Max More.