DEFINITION of 'Ithaca HOURS'
A local currency used in Ithaca, New York,, and pegged at $10. An Ithaca HOUR is not fiat currency and is not backed by the United States government. Local businesses are not required to accept the currency for the purchase of goods and services. Businesses and individuals who received Ithaca HOURS must use them in local establishments, as other localities typically do not accept them.
BREAKING DOWN 'Ithaca HOURS'
Local currencies, such as Ithaca HOURS, are designed to promote the development of local economies by shifting consumers to a less liquid currency than the dollar. During recessions and down markets, local businesses are less likely to accept local currencies as their creditors may not accept them.