Skip to main content

Currency Pluralism and Economic Stability: The Swiss Experience

By Wojtek Kalinowski

23 October 2011

[English] [français]

The Swiss complementary currency WIR is a classic example of monetary creation managed by economic agents lying outside the traditional banking system. When faced with tightening of credit or liquidity crises, Swiss small businesses increase their WIR transactions; when conditions improve, they return to the Swiss franc. This countercyclical effect illustrates the potential for parallel currencies to serve as tools for macroeconomic stability.

Subscribe to the newsletter