Terra (The Trade Reference Currency, TRC) is the name of a possible "world currency". The concept was proposed by Belgian economist and expert on monetary systems Bernard A. Lietaer in 2001, based on a similar proposal from the 1930s.
The currency is meant to be based on a basket of the 9-12 most important commodities (according to their importance in worldwide trade). Lietaer opines this would provide a currency that wouldn't suffer from inflation:
Terra = reference unit defined as standardized basket of key internationally traded commodities & services.
Example: 100 Terra =
1 barrel of oil
+ 10 bushels of wheat
+ 20 kg of copper
+ 1/10 of ounce of gold
NB: any standardizable good or service can be included.
Similar stability to gold standard, but with basket instead of single commodity (more stable than any one component)...
Terra is Inflation-resistant by definition.
The basic principle emerged from early concepts presented in an article in the French newspaper "Le Fédériste" on 1 January 1933. The idea to establish a "L'Europa – monnaie de la paix", in English "Europe - Money of peace", was given birth. The idea was enthusiastically picked up by Lietaer during an educational journey.
- Lietaer, Bernard (2001). The Future of Money. London: Century. ISBN 0-7126-8399-2. OCLC 43633316.[page needed]
- Lietaer, Bernard (2002). Das Geld der Zukunft. Sonderausgabe. München: Riemann Verlag. ISBN 3-570-50035-7. OCLC 76371515.[page needed]