In the theory of Freiwirtschaft, Freigeld (German for free money) is a monetary (or exchange) unit. It has several special properties: Freiwirtschaft (German for free economy) is an economic idea founded by Silvio Gesell in 1916. ... An example of Money. ...
It is maintained by a monetary authority to be spending power stable (no inflation or deflation) by means of printing more money or withdrawing money from circulation
It is cash flow safe (a scheme will be put in place to ensure that the money is returned into the cash flow - for example, by requiring stamps to be purchased and attached to the money to keep it valid)
The name results from the idea that there is no incentive to store the money as it will automatically lose its value after some time. It is claimed that as a result, interest rates will drop to almost zero. In economics, deflation is a decrease in the general price level, or a rise in the purchasing power of money with respect to a large class of consumption goods or services, over a period of time. ... In finance, cash flow refers to the amounts of cash being received and spent by a business during a defined period of time, sometimes tied to a specific project. ...-1... An interest rate is the price a borrower pays for the use of money he does not own, and the return a lender receives for deferring his consumption, by lending to the borrower. ...
Freigeld (German for free money) or Schwundgeld (depreciative money) is a monetary (or exchange) unit, which follows the economic concept of Freiwirtschft (free economy).
However, most famous is the use of Freigeld in the Austrian community of Wörgl.
Silvio Gesell was born at St. Vith on the German-Luxembourg frontier to a German father and a French mother.
It is maintained by a monetary authority to be spending power stable (no inflation or deflation) by means of printing more money or withdrawing money from circulation
It is claimed that as a result, interest rates will drop to almost zero.
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