The "multiplier effect" of local currencies refers most specifically to the fact that a given amount of local currency changes hands numerous times in the course of a year. So you can convert the known quantity of the stock of currency in circulation at a point in time into a number that measures the value of the total transactions the currency has played a role in. In Ithaca, for example, we have about 6,700 HOURS in circulation at the moment. (Published Dec. 1998)

Concepts

economics, fiscal policy

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Additional Tags

multiplier effect

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Classroom Considerations

• Knovation Readability Score: 5 (1 low difficulty, 5 high difficulty)

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