Local Currency Chiemgauer and the Quantity Theory of Money

Abstract

The roots of the Chiemgauer are closely related to the quantity theory, which has a long history and goes back in its modern form to David Hume and John Locke. Keynes admits a high value to the quantity theory. Despite extensive and diverse criticism of the quantity theory, it can be very helpful in the context of complementary currencies, especially if they are linked to an experimental character and to social und ecological goals. The empirical part begins with a data collection on the Chiemgauer and leads to experimental application via a contextual representation of quantity theory. As a result, an increased velocity ofcirculation is accompanied by a higher value added multiplier in the region.