When people first encounter Silvio Gesell’s proposal for monetary reform — i.e. demurrage, a system in which units of currency lose purchasing power at a predetermined, scheduled rate of depreciation — they often jump to the conclusion that demurrage is equivalent to inflation. “Why do we need demurrage when we already have inflation?” is the most common question people ask when they first hear Gesell’s ideas. But demurrage and inflation are NOT the same thing. Although they have some similarities, they are VASTLY different in terms of how they affect the circulation and distribution of wealth throughout the economy. It is critical to understand these differences.
My concern and question is about saving for a rainy day or saving for other purposes like buying a house. how can one save with demurrage?