Thursday, October 02, 2008

More on the Lewes Pound

Tab clear-out... According to the Argus a few weeks ago, "[the] currency has shot up in value by 3,000% only days after its launch because collectors are selling it on the internet."

I'm wondering about this. Is it better to leave this to happen and accept that x% of the currency will "leave" circulation? Or could you somehow "auto-expire" physical notes after a certain period, and maybe renew the expiration date once they're used to buy something?

2 comments:

phil jones said...

If it's collectors, I don't suppose auto-expire or demurrage is going to help all that much, because they aren't expecting to spend again anyway.

Better would be just to print enough to replace the losses.

Scribe said...

But from the point of view of the issuers, you may not know where the money is going. As I understand it, economics is all about controlling the flow of money, so would auto-expiry help to control that?

Or is it just a "technical" "fix" that would actually kill off the beauty of money - that it doesn't really require any particular infrastructure to make it work? (Other than an anti-forgery infrastructure, perhaps.)