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The real benefits, if they exist, are not economic but social, and best explained not by an economist like me but by a sociologist such as Ed Collom of the University of Southern Maine.

Collom's work looks, at first glance, like bad news for the community-currency movement. He has found, for example, that most currency schemes in the United States last only a few years before collapsing. The ones that thrive are in places which already have strong, liberal, middle-class communities, such as Portland, Ore., or Ithaca, N.Y. In the Rust Belt areas that would seem to need them more, they have not taken root.

But despite the obstacles, Ed Collom is convinced that local currencies can strengthen neighborhood ties and allow people to make friends: They are a focal point for the community-minded, even when they do not last.

That is possible. I live near a determined, community-minded entrepreneur who owns the local cafe, the sort of person who helps to get community currencies started. But rather than minting a Homerton dollar, she has founded a traders' association and is trying to set up a street market. I think she has the right priorities.