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Local Currency

The expression "local currency" refers to complementary currency used only in a defined region as an alternative to the national currency. Local currency can be further divided into four general types: paper currency, bankbook recordings, checks, and time dollars. People use local currencies within a region for local, small-scale circulation, which can include use as payment in a local shopping area or as a token of gratitude for volunteer work or a service rendered. In addition, local currencies have been drawing attention as a means to revitalize a community or stimulate a regional economy. In 1999, the NHK satellite television broadcast of "Michael Ende's Last Message: Questioning Money from Its Roots" became a catalyst for local currency efforts in Japan, which then spread throughout the country. Currently, over 600 local currencies exist in Japan, including a currency called 'Rate' (pronounced ra-tay), issued by Sanjo City in Niigata Prefecture, and Earth Day Money known as 'R' (pronounced a-ru), a local currency used around the Shibuya district in Tokyo and spreading from there (data procured from the All Local Currencies List: http://www.cc-pr.net/list/ (Japanese only) on January 6, 2011). Well known local currencies from outside of Japan include Ithaca HOURS (http://www.ithacahours.com/), used in Ithaca, New York State, USA, and LETS (Local Exchange Trading System), which began in Canada and has spread to other countries such as the United Kingdom and Australia.

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