How Money Systems Work Publications Payment Methods Glossary of Terms The Money Conference

 

Currency Systems
Backed Currencies Transaction NetIthaca HOURS
LETSNational Currencies
ROCSTime Dollars
Complementary Currencies

Ithaca HOURS

Benefits How Issued Unit of Account Exchange RateIncentives Applications Related ResourcesInteract

Benefits of the HOURS model:

Benefits How Issued Unit of Account Exchange RateIncentives Applications Related ResourcesInteract

How Ithaca HOURS are issued:

The bulk of the Ithaca HOURS are issued when someone advertises goods or services in the local Ithaca HOURS tabloid. Some issues are also given to projects deemed worthwhile for the community during the monthly community potluck meetings where main decisions are made.

Benefits How Issued Unit of Account Exchange RateIncentives Applications Related ResourcesInteract

How HOURS are measured:

The "going rate" for an Ithaca HOUR has been fixed at US$10 estimated as the value of one hour of average work. It is also a convenient decimal value so that pricing is easy for merchants.

Benefits How Issued Unit of Account Exchange RateIncentives Applications Related ResourcesInteract

HOURS exchanges are negotiable.

Participants may negotiate the number of HOURs to be exchanged in any particular transaction: One hour of a service requiring extensive training, skill, and experience, or expensive equipment, or posing high risk, may justifiably be worth several hours of less demanding work.

By leaving it to the negotiating parties to fix the number of "standard" HOURs of common service a particular service requires, one solves the problem of having to pre-determine the value of everyone's time, as was attempted unsuccessfully under the Soviet planning system.

Benefits How Issued Unit of Account Exchange Rate Incentives Applications Related ResourcesInteract

Structural incentives in HOURS systems:

Given that there is no interest on HOURS, the built-in incentive to discount the future found in national currencies is reduced but not reversed.

HOURS are created by fiat, so they must be carefully managed by the issuing authority to prevent inflation.

Benefits How Issued Unit of Account Exchange Rate Incentives Applications Related ResourcesInteract

Applications of the Ithaca HOURS model:

 

Benefits How Issued Unit of Account Exchange RateIncentives Applications Related ResourcesInteract

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Benefits How Issued Unit of Account Exchange RateIncentives Applications Related Resources Interact

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How Money Systems Work Publications Payment Methods Glossary of Terms The Money Conference


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