delawareonline: In face of globalization, currency goes local - by David McHugh

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In face of globalization, currency goes local - by David McHugh

BERLIN -- A 10-euro bill buys a fine organic Riesling at the Alles Fliesst wine shop in Berlin's bustling Kreuzberg neighborhood. Or, as some regular customers do, you can hand the cashier something else: 10 locally printed Berliners.

The principle behind a neighborhood currency is that it will be spent to support locally owned businesses and strengthen the community, said Suzanne Thomas, who leads the volunteer-run Berliner project.A key feature of the Berliner -- and several other regional currencies -- is that it expires after six months and can be exchanged for a new one -- but minus 2 percent. That pushes people to spend it quickly and give an added kick to the local economy.

People use the community currency to support a cause, Gerhard Roesl of Regensburg University wrote in a 63-page Bundesbank analysis. "These currencies offer a chance for the holder to demonstratively support the local region and to make a statement against globalization," he wrote.