The Local Multiplier Effect

Okay. I'm definitely hooked on Go Local Sonoma County's website. There is so much excellent information on there that I couldn't help but make one more post on banking locally. The following information is taken from a post by Kelley Rajala and Terry Garrett.Make sure to follow the link to see a great Prezi on the Local Multiplier Effect. (Background: Prezi is similar to PowerPoint, but is less linear in both layout as well as scope.) Enjoy!

The Local Multiplier Effect is a very valuable, hidden feature of our economies. The term refers to how many times dollars are recirculated within a local economy before leaving through the purchase of an import. Famed economist John Maynard Keynes first coined the term "Local Multiplier Effect" in his 1936 book The General Theory of Employment, Interest and Money.

Prezi on the Local Multiplier Effect