Bernard Lietaer - The future of money

In November of 1991, he launched a complementary currency designed to encourage people to spend their money and time in the community. Although it requires a little more infrastructure than Time Dollars, it still remains remarkably simple.

IN ITHACA WE TRUST The core of the system is a bimonthly tabloid-style newspaper that advertises the products and services of people and businesses who accept Ithaca HOURS. One Ithaca HOUR is equivalent to $10, and represents roughly one hour's work at a generous minimum wage in the area. There are bills in denominations of two, one, one half and one quarter of an hour. Most Ithaca HOUR bills are issued initially via the advertisers in the tabloid newspaper. Each advertiser receives four HOURS' worth in bills when they place an advertisement in the newspaper. The community in which Ithaca HOURS can be spent is voluntarily limited to a geographical radius of 20 miles around the centre of town.

The bimonthly tabloid typically includes about 1,200 listings, including over 200 businesses. These include a local supermarket, all three cinemas, the farmer's market, medical care, and lawyers, business consulting and the best restaurant in town. The local bank also accepts accounts in complementary currency, and has been able to attract a very loyal local customer base as a consequence.

One of the keys here is that the advertisers provide their quote in a combination of the two currencies. For example, a house painter advertises that he wants US$10 per hour, 60-40 (meaning 60% is payable in Ithaca HOURS, and 40% in regular US dollar currency for the paint, brushes, petrol, taxes, etc.). Another painter may advertise at $11 per hour, 90-10 (he is willing to accept up to 90% in Ithaca HOURS). So, if you happen to have more Ithaca HOURS available