Current complementary currencies have often been designed intentionally to address specific issues, for example to increase financial stability. Most complementary currencies have multiple purposes and/or are intended to address multiple issues. They can be useful for communities that do not have access to financial capital, and for adjusting peoples' spending behavior. The 2006 Annual Report of the Worldwide Database of Complementary Currency Systems presented a survey of 150 complementary currency systems in which 94 respondents said that "all reasons" were selected, among cooperation, micro/small/medium enterprise development, activating the local market, reducing the need for national currency, and community development. Aims may include: • resocialisation and emancipation • lifeboat currencies • to increase financial stability • to reduce carbon emissions, by encouraging localisation of trade and relationships • to encouraging use of under-used resources • to recognise the informal economy • promote local businesses • maintaining purchasing power, value preservation
Advantages Alternative currencies increase in activity if the local economy slows down, and decrease in activity if the local economy goes up. They are most successful if the currency circulates within the users, in cycles or loops, as shown in an analysis of the use of by 1,477 entities in Sardinia in 2013 and 2014.
Disadvantages According to professor Nikolaus Läufer's theory, the use of local currencies such as
Freigeld can only increase economic activity temporarily. Lengthy use of a local currency will ultimately result in a decline in economic activity and lead to a destabilization of the economy. This is due to the increased circulation velocity of the money as the amount in circulation decreases (as currencies as Freigeld reduce in value rapidly). ==Tax==