Totnes Pound

AAA

DEFINITION of 'Totnes Pound'

An alternative currency of Totnes, in Devon, United Kingdom. The Totnes pound is intended to support the local economy, and is an initiative of the Transition Town Totnes Economics and Livelihoods group. The currency was launched in March 2007, and has a value of one Totnes pound to one pound sterling. The currency is backed by sterling that is held in a bank account. The launching group believes that "economic localization is considered to be a key aspect of the transition process, and local currency systems provide the opportunity to strengthen the local economy whilst preventing money from leaking out."

INVESTOPEDIA EXPLAINS 'Totnes Pound'

The benefits of the Totnes pound, as listed on the Transition Town Totnes website, are: To create a stronger local economy by keeping money circulating within the community; to encourage people to think and talk about how they spend money; and to encourage more local trade and encourage tourists to visit local businesses.


The Totnes pound notes (bills) are printed locally on plasticized paper. The Totnes pound has inspired other local currency projects, including the Lewes pound in Lewes, East Sussex.

RELATED TERMS
  1. Fiat Money

    Currency that a government has declared to be legal tender, but ...
  2. Lewes Pound

    A local currency used in Lewes, East Sussex, United Kingdom. ...
  3. Economics

    A social science that studies how individuals, governments, firms ...
  4. Economy

    The large set of inter-related economic production and consumption ...
  5. Currency

    A generally accepted form of money, including coins and paper ...
  6. Gold Standard

    A monetary system in which a country's government allows its ...
Related Articles
  1. How are international exchange rates ...
    Forex

    How are international exchange rates ...

  2. Dual And Multiple Exchange Rates 101
    Forex Education

    Dual And Multiple Exchange Rates 101

  3. What Are Central Banks?
    Personal Finance

    What Are Central Banks?

  4. The Advantage Of Intermarket Analysis
    Active Trading

    The Advantage Of Intermarket Analysis

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center