Economic Secession

DEFINITION of 'Economic Secession'

The exchange of goods or services outside of a traditional economic system. Economic secession entails removing oneself from the use of fiat currency, instead relying on barter or commodity-based currencies to conduct transactions. Economic secession is a method of reducing government influence on economic decisions, because it does not utilize legal tender and is not subject to taxation.

BREAKING DOWN 'Economic Secession'

Economic secession removes individuals or localities from a country's general economic network. This reduces the power of the government, since it no longer is able to use monetary policy to influence behavior. As such, it is considered a form of anarchy or part of the black economy. Tax avoidance is an example of economic secessio, in practice.