Sorry I came into this discussion late, but I'd like to refer back to:
Quote:
Originally Posted by Kensington  The transition Town movement is introducing several local currencies in England. I don't really support their ideas so far. First of all, you have to buy one alternative 'pound' with a normal pound. One is simply swapping national currency for local currency. The idea is that the novelty factor will encourage people to spend more in the local area. |
My understanding of the Transition Towns currency is that you buy (say) 10 local pounds for 9 national pounds. You can spend these in any participating local shop. You get £10 local retail value for £9 of national money, and the local shopkeepers get your business in exchange for this 10/9 (is that 11 per cent?) discount. They make that much less markup on their sale, but at least they get your business.