Fiscal localism comprises institutions of localized monetary exchange. Sometimes considered a backlash against global capitalism, fiscal localism affords voluntary, market structures that help communities trade more efficiently within their communities and regions.

Fiscal localism

"Buy local" is the most visible face of fiscal localism. There are more complex institutions (both new and well established) that contribute to a community's ability to flourish. Institutions like credit unions, CDFI's (Community Development Financial Institutions), and local currency

Local currency

In economics, a local currency, in its common usage, is a currency not backed by a national government , and intended to trade only in a small area. As a tool of fiscal localism, local moneys can raise awareness of the state of the local economy, especially among those who may be unfamiliar or...

 or complementary currency

Complementary currency

Complementary currency is a currency meant to be used as a complement to another currency, typically a national currency. Complementary currency is sometimes referred to as complementary community currency or as community currency...

 all can contribute to making communities more resilient and wealthy.

Local currency has been in the news most, with journalists citing the Berkshares

BerkShares

BerkShares is a local currency that circulates in The Berkshires region of Massachusetts. It was launched September 29, 2006 by BerkShares Inc., with research and development assistance from the New Economics Institute. The BerkShares website lists over 370 businesses in Berkshire County that...

 in Massachusetts

Massachusetts

The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...

, and the Ithaca Hours

Ithaca Hours

The Ithaca HOUR is a local currency used in Ithaca, New York and is the oldest and largest local currency system in the United States that is still operating. It has inspired other similar systems in Madison, Wisconsin; Corvallis, Oregon; and a proposed system in the Lehigh Valley, Pennsylvania...

 in Ithaca, New York

Ithaca, New York

The city of Ithaca, is a city in upstate New York and the county seat of Tompkins County, as well as the largest community in the Ithaca-Tompkins County metropolitan area...

. Beyond these salient examples, there are thousands of local currencies all over the world.

See also

• Barter
  Barter
  Barter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is usually bilateral, but may be multilateral, and usually exists parallel to monetary systems in most developed countries, though to a...
  
  
• Credit union
  Credit union
  A credit union is a cooperative financial institution that is owned and controlled by its members and operated for the purpose of promoting thrift, providing credit at competitive rates, and providing other financial services to its members...
  
  
• Cooperatives
• CDFI
• Community currency
• Informal sector (economy)
• Time-based currency
  Time-based currency
  In economics, a time-based currency is an alternative currency where the unit of exchange is the man-hour.Some time-based currencies value everyone’s contributions equally. One hour equals one service credit...
  
  
• Time Banking
  Time Banking
  Time banking is a pattern of reciprocal service exchange that uses units of time as currency. It is an example of an alternative monetary system. A time bank, also known as a service exchange, is a community that practices time banking...
  
  
• Buy local

External links

• http://www.npr.org/templates/story/story.php?storyId=128546325
• http://news.bbc.co.uk/2/hi/uk_news/magazine/8245276.stm
• http://www.ratical.org/many_worlds/cc/localmoney.html
• http://www.ithacahours.com/
• http://www.berkshares.org/
• http://www.slate.com/id/2190116/
• http://www.domini.com/community-investing/What-Is-A-/index.htm