Time Dollar - Definition and Overview

Time Dollars Service Exchange is an alternative US economic system measured in hours of service.

Backed by an hour of community service and created via mutual credit, Time Dollars are among the simplest currency systems to implement: the only infrastructure needed is a central registry, which can be as simple as a notepad or blackboard, to record account balances.

Time Dollars are always sufficient, so they tend to encourage a "favor economy" of cooperation and trade among participants.

Time Dollars are created via mutual credit: Each transaction is recorded as a corresponding credit and debit in the accounts of the participants.

One hour is measured the same independently of place and circumstances, so Time Dollars are immune to the fluctuations in value of commodity-backed and fiat currencies.

In most adaptations of the Time Dollars system, each participant's time is valued equally, whether s/he is a novice or an extensively trained expert. For that reason, the Time Dollars model works best in very narrowly defined communities (retirement homes, for example), where everyone's time, skill, experience, and effort is regarded as equal.

Time Dollars

• recognize, and thus encourage, reciprocal community service;
• are backed with service time and thus resist inflation without encouraging hoarding; and
• are in sufficient supply, enabling trade and cooperation among participants.