This is really neat. Ithaca, New York, has created a micro-economy by printing their own fiat money called HOURS . Given that the county’s average hour of labor is worth $10.00, they tie their currency to this rate. Only local companies pay using HOURS, and only local stores/businesses accept HOURS as currency, so the money stays local. HOURS are slowly introduced to the local economy, and are touted as a way to boost both local economy and local identity/pride. And, yes, it’s legal.
An interesting idea.
More on their about page. Transaction.net has a good summary and set of related links, and Paul Grover has a good article on the subject, Grassroots Economics .