This time on Barry Ritholtz’ well-read Big Picture blog, in a guest entry by Frederick Sheehan, author of the book “Greenspan’s Bubbles.” A provocative excerpt:
The citizens of Central Falls are not going to rust. They need to think. The city may be able to sell or lease assets. It could ignore federal laws and regulations imposed on cities unless Washington funds its impositions on Central Falls. … Such an ultimatum would probably cut Central Falls spending by 50%. The city could issue scrip to employees and suppliers. Scrip is “emergency money” that was used across the United States in the 1930s. … Merchants chose whether or not to accept it. It was often accepted during the 1930s, at least for a time, when a solution beckoned.
I wonder what a Central Falls currency would look like?