Mersch: regional currencies are flawed
ECB’s Yves Mersch warns they can harm the economies using them
Regional currencies can damage the areas that use them, as well as their commercial partners, according to European Central bank (ECB) executive board member Yves Mersch.
Mersch, speaking at a Deutsche Bundesbank symposium, said regional money is often issued to "artificially keep purchasing power local" and pointed to the ‘chiemgauer' – a currency that comprises 700,000 vouchers in Upper Bavaria.
He warned that such a "closing off" can impede inter-regional trade, while also harming potential
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