Introducing good money: legal tender problem or question of structured approach?

• Authors: Edo Omercevic
• Languages of publication: EN

Abstracts

EN

The aim of this paper is to theoretically analyse the issues concerning the introduction of alternative moneys. A brief performance evaluation of the current monetary system, as well as two alternatives, namely gold and a private currency, i.e. the Swiss WIR, is followed by a historical look at the relationship between legal tender laws and Gresham’s Law. The significance of legal tender laws in introducing alternative moneys is questioned and the focus is shifted to the political and ideological problems. It is pointed out that a professional and structured approach needs to be adopted to successfully introduce monetary substitutes. The derived conclusion is that legal tender laws are not the major factor hindering the introduction of alternative moneys, but that a range of legal, economic and political factors require a dedicated and professional approach to enable the private sector to work on better exchange mechanisms.

Keywords

EN

Money; Legal Tender Law; Private Currency

• Publisher: Sciendo
• Journal: DANUBE: Law and Economics Review
• Year: 2014
• Volume: 5
• Issue: 1
• Pages: 53-64

Dates

published

2014-03-01

online

2014-04-12

Contributors

author

Edo Omercevic

• Center for the Advancement of Free Enterprise, (Centar za poslovnu afirmaciju), Dr. Cire Truhelke 10/A, 72000 Zenica, Bosnia and Herzegovina

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Identifiers

DOI

10.2478/danb-2014-0003