Terra

The ‘Terra’ is a proposal for a commodity-backed currency, proposed by Belgian economist Bernard Lietaer.

Like other comparable models, the Terra is designed as an inflation-immune currency capable of stabilising global trade. This is achieved by linking the value of the currency to a ‘basket’ of around a dozen core commodities, such as oil, gold and copper.

As the value of these commodities rises (or, indeed, falls), so will the value of the currency, meaning that its ‘real’ value should remain constant in relation to the ‘real’ productive and commodity-based economy – that is, non-inflationary.

The Terra is proposed as an international unit of exchange capable of providing businesses and states with a stable and shared measure of value regardless of wider inflation.

At local or regional level, energy currencies can promote more sustainable consumption and generate funds for investment in renewable energy production.

These self-financing currencies could be redeemable in local participating businesses and, potentially, with producers of local renewable energy.