Community service, and economics too December 3, 2012 at 6:53 am

The University of Missouri at Kansas City has its own currency. It’s called the buckaroo, and it teaches students about currencies, while encouraging them to do community service. Warren Mosler explains:

  • All students are required to submit 20 buckaroos by the end of the semester to get their grades. Buckaroos can be earned by doing designated community service jobs.
  • There is no limit to how many buckaroos a student may earn.
  • Buckaroos are freely transferable.

UMKC, being a fiat issuer, can create as many buckaroos as it wishes: and it creates one whenever a student completes an hour of community service. There is a zero interest rate policy in effect, and the value of the buckaroo vs. the dollar depends on what a student will spend to evade an hour of community service. Moreover, not only does UMKC’s deficit exactly equal the buckaroos saved by the students, the value of the currency depends entirely on UMKC’s ability to tax students in buckaroos. Educationally neat, methinks.

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