During the 1930s there were hundreds of experiments in the USA and many significant experiments in Europe to deal with the drying up of money. The same problem happened for several years in Argentina between 2000-2003. The LETs monies in Argentina were subject to massive inflation and lost trust and essentially went bust because of lack of credit controls. The leading thinker of co-operative money systems was the German Silvio Gesell. This 4 minute video about his ideas and the auspicious Worgl experiment that was successful and then banned by the Austrian central bank is important to consider.
For more on money creation we recommend the Commons Strategies Group report on Democratic Money and Capital for the Commons.
