Definition
According to wikipedia:
- In complementary currencies' field, demurrage is used to define a cost associated with owning or holding currency. It is sometimes referred to as a carrying cost of money. The term was used by Silvio Gesell. It is regarded by some as having a number of advantages over interest: while interest on deposits lead to discount the future and to place immediate gains ahead of long-term concerns, demurrage does the opposite, creating an incentive to invest in assets which lead to longer-term sustainable growth. Furthermore, demurrage acts like inflation, stimulating the circulation of the currency, encouraging economic activity, and increasing employment.
Demurrage is also explained as
negative interest, by opposition of conventional money where positive interest is applied (usury
?).
Examples of currencies using demurrage
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Creditos in Argentina
Develop text about Reds de Trueque in Argentina during the crisis
Discussion
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Links and references
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External links
References
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