REGIONAL CURRENCIES AS A SYMPTOM OF A POSTMODERN CRISIS OF THE EURO - STATEMENT OF THE PROBLEM AND SUGGESTED REMEDY
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Over the last six years 16 regional currencies have emerged in Germany as alternative media of exchange. Drawing inspiration from van de Kaa (2001), the paper presents the phenomenon as an indication of broad social and political changes characteristic of postmodernity. An economic analysis is provided suggesting that regional currencies are mostly based on unsound economics and as such are unlikely to constitute a threat to the common European currency. The threat may be seen however not in the growing - but as yet still negligible - total volume of regional currencies but rather in the skeptical attitude towards European integration which underlies the creation of local alternatives to the euro. Hayek's approach of choice in currency is presented as a possible remedy for the problem, enabling to preserve both local currencies, and economic integration of Europe.
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