The 1932–3 ‘Miracle of Wörgl’ – named after the Austrian town in which it occurred – is one of the best-known examples of a community currency stimulating the local economy. In the midst of the Great Depression’s monetary contraction, the town’s new mayor, Michael Unterguggenberger, issued a town currency incorporating demurrage.
Currency circulation was boosted and the small town of Wörgl was able to stave off the effects of the global crisis: unemployment was vastly reduced; streets were repaved; new houses were constructed; major infrastructure projects were accomplished. All was financed by the town’s ‘free money’.
As Wörgl’s example gained fame, the Austrian central bank stepped in. Community currencies were outlawed and the Depression returned.
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