Worgl Experiment: printing depreciating currency

trendie

Legendary member
6,536 1,129
Watched a TedX talk about economics and stuff.
Came across this one about the Worgl currency experiment in Austria in the 1930s.
Essentially, in order to kickstart some economic activity the mayor produced local currency that depreciated! What happened was that people worked, and rather than lose the value (1% per month), they spent it sooner than later, resulting in more work for others.
I found it quite fascinating.

TEDxBlackRockCity - Hollis Doherty - The Woergl Experiment and the Evolution of Money - YouTube

a bit more detail: (I'm sure you can find more comprehensive explanations if you google.)
The Wörgl Experiment: Austria (1932-1933) | Currency Solutions for a Wiser World
 

counter_violent

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FringFX

Active member
244 6
Thanks trendie, c_v. Fascinating indeed.

IIRC, BBC run a news feature about a local (Greek?) currency several months ago
 

Pat494

Legendary member
14,499 1,542
Talking about printing money, I seem to recall that Russia is second only to the USA in printing US dollar bills. All counterfeit but not really a problem outside of USA !

Both avid followers of Robert Mugabe's system !! He got right up to printing off $20 billion notes. and worthless. NOw that is economics African style.

:LOL:
 

FringFX

Active member
244 6
$20 billion notes? I want some of those for my collection :D
 

natureboy

Established member
770 2
Berkshares are in the states counter-violent. I'm also wanting to generate interest in silver backed notes here in the Bluegrass of KY. We need a backup currency over here for when USD goes into more severe inflation. popular support is lacking - man is a party animal, as long as things are going ok he's not going to plan for the possible future very well..

Bernard Lietaer also has interesting thoughts on local and competing currencies.
 

natureboy

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770 2
Speaking of Mugabe, I have a 100 trillion dollar Zimbabwe note framed in my trading room. I'm collecting Pengo, Yugoslav, Weimar, and continental paper notes for a hyperinflation hobby..
 
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natureboy

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770 2
The deal with the liberty dollar was coinage. The constitution, not that it's being followed, says no private coinage, yet is silent on paper money. That's how the Fed was able to hoist itself into existence legally I think (as well as the us central banks b4 the fed).
 

Pat494

Legendary member
14,499 1,542
Speaking of Mugabe, I have a 100 trillion dollar Zimbabwe note framed in my trading room. I'm collecting Pengo, Yugoslav, Weimar, and continental paper notes for a hyperinflation hobby..

Phew didn't know they went that high ?

How about now ?
 

natureboy

Established member
770 2
no clue.. i saw an article where people were gluing it to walls for graffiti .. showing the money had become wallpaper.. i think the people are just using euros, usd, gbp

i'll post a picture tomorrow of that note
 
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Pat494

Legendary member
14,499 1,542
How about this million US $ note I have. Don't know where it was printed.

The average New Yorker would kill for it I expect.
 

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natureboy

Established member
770 2
zbuck.jpg

Here's that Zimbabwe note.. Relates to Worgl in that the instability in value in currencies like Z$ have happened other places..Yugoslavia, Hungary, Weimar Germany..or the deflationary 1930s. the consequent employment and manufacturing crises ... all were reversed just by having a stable currency. No inflation, no deflation, just what's needed for commerce. That's amazing that the Worgl Experiment could swiftly achieve stability in the face of worldwide economic depression
 

Pat494

Legendary member
14,499 1,542
View attachment 146686

Here's that Zimbabwe note.. Relates to Worgl in that the instability in value in currencies like Z$ have happened other places..Yugoslavia, Hungary, Weimar Germany..or the deflationary 1930s. the consequent employment and manufacturing crises ... all were reversed just by having a stable currency. No inflation, no deflation, just what's needed for commerce. That's amazing that the Worgl Experiment could swiftly achieve stability in the face of worldwide economic depression

could be worth a dollar or two in 50 years !

:LOL:
 

dotcom

Member
62 1
i really like this story. I came up with an similar solution to this a month ago when i was studying the 08 crisis. Mine is a little more strategic and cultural and slowly builds to remove money. It would work we just need a building load of money to do it. We can always start small and move up very quickly.
 
 
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