Fiscal Localism

AAA

DEFINITION of 'Fiscal Localism'

Institutionalized monetary exchange focused upon local and regional aspects. Fiscal localism can refer to different theologies, but the most basic and easily recognizable form of fiscal localism would be the idea of buying locally. Advocates of the practice believe that fiscal localism allows communities to grow organically and more efficiently, as local merchants and consumers work together to further their resident economy.

INVESTOPEDIA EXPLAINS 'Fiscal Localism'

In addition to the idea of buying locally to support the local economy, local fiscalism can also include the use of a localized currency. By using a local currency, a community may be able to better gauge its true economic performance, as economic factors such as inflation and interest rates tend to be a national metric. By using a local currency, that unit of value may be a better measure of the region's economic conditions than a national currency may be.

RELATED TERMS
  1. Capitalism

    A system of economics based on the private ownership of capital ...
  2. Socialism

    An economic and political system based on public or collective ...
  3. Classical Economics

    Classical economics refers to work done by a group of economists ...
  4. Invisible Hand

    A term coined by economist Adam Smith in his 1776 book "An Inquiry ...
  5. Free Enterprise

    An economic system where few restrictions are placed on business ...
  6. LIBOR

    LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate ...
Related Articles
  1. Understanding Supply-Side Economics
    Economics

    Understanding Supply-Side Economics

  2. The Uncertainty Of Economics: Exploring ...
    Economics

    The Uncertainty Of Economics: Exploring ...

  3. The History Of Economic Thought
    Economics

    The History Of Economic Thought

  4. The History Of Capitalism: From Feudalism ...
    Personal Finance

    The History Of Capitalism: From Feudalism ...

comments powered by Disqus
Hot Definitions
  1. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  2. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  3. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  4. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  5. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  6. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
Trading Center