W W W . A G O R I S M . I N F O
Agora! Anarchy! Action!
Q: What about money and exchange?
A: Money and non-monetary trading systems under free banking could be created by every person.
Examples:
- Backed currency
A currency whose value is guaranteed by a direct correspondence with a product or service (e.g. the gold standard for 19th century U.S. dollars, barter).1)
- Mutual credit
A system in which the currency necessary to mediate a transaction is created at the time of the transaction as a corresponding credit and debit in the balances of the two parties. These systems (LETS and Time Dollars, and the proposed ROCS), unlike fiat currencies, do not require any centralized money supply management.2)
All these forms of exchange are immune to inflation and economic cycles as we know.
