Foreign means of payment which, in addition to the legally prescribed unit, appear in a geographical area primarily as an intermediate means of exchange, but often also as a unit of account (money that is used in conjunction with local currency). The reason for this is – a distrust of one’s own money, as for example at the time of the collapse in value of the mark around 1923: the dollar became a secondary currency, or at the time of the GDR: the DMWest with its purchasing power was in demand; – in border regions, the interlocking of trade and service providers from two different currency areas, as for example in the Euregio Basel the CHF and the EUR. – A commodity mediated exchange alongside or instead of the legally prescribed money, such as the cigarette in Germany between 1945 and 1948 (cigarette currency; “Zigarettenwährung”). – Private money circulating in certain areas on a voluntary basis, usually put into circulation by critics of the existing economic system, such as free-money advocates, globalization critics, naysayers and euro opponents. – See alternative currency, acceptance compulsion, bedside currency, bitcoin, dollarization, euroization, free money, money, moral, money abolition, money refusion, money trust, Gresham’s Law, capital flight, mutualism, net money, reference currency, regional money, settlement money, currency, commodity money, economic patriotism, means of payment, cigarette currency.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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