Healthy Money Healthy Planet - library.uniteddiversity.coop

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Glossary
Barter The direct exchange of goods or services without using the medium of a
currency.
Benefit abatement Reduction in unemployment, sickness or domestic purposes
benefits when income is received from another source. Work and Income New
Zealand (WINZ) applies a formula to calculate this reduction.
Bretton Woods A town in New Hampshire, USA, where the Bretton Woods
Agreement was finalised in 1945. The system agreed to gave the status of
official global reserve currency to the US dollar, while the US guaranteed the
convertibility of dollars to gold on demand of other central banks at a fixed rate
of US$35 per ounce. In 1971, President Nixon delinked the dollar from gold,
thus effectively annulling the Bretton Woods Agreement. Since then currencies
have been floating.
Circulation incentive An incentive built into a currency designed to stimulate
more rapid circulation. This involves either imposing a financial penalty for
hoarding the currency or an incentive for using it. One currency incentive is
demurrage (see below).
Commercial trade barter The practice by which a barter company sets itself up
as a broker for a mutual credit system between commercial businesses and
charges a percentage commission fee for each buyer and seller in each deal.
Community currency A currency designed and accepted by a community of
people, whether the community is defined geographically or by some other
criteria.
Complementary currency A currency that complements or completes a major
currency; the major currency is usually the national currency.
Currency Synonymous with money, but emphasising the medium of exchange
function of money
Currency in circulation The money that is in circulation in an economy. Some
of the currency in circulation is in the hands of the public and some is in the
possession of the various national banks.
Demurrage A fee placed on any money that is ‘parked’ and remains stationary.
Also defined as the extra charge per unit of time required as compensation for a
delay (this definition is derived from the concept of delay of a ship, railway
wagon, etc., caused by failure to load or unload before the time scheduled for
departure). Demurrage acts as a circulation incentive and as a disincentive to