This DIY workbook by Justin Sacks outlines a tool developed by the New Economics Foundation to measure how effectively different parts of a local economy are working. This tool (LM3) has been tried and tested across the UK, from agriculture to social enterprise to local government procurement, to determine how money coming into a community is then spent and re-spent. This guide shows you how to use LM3 to find out what’s really happening in a local economy, and how this economy can improve.
Read the document (1.8 MiB)
Sacks, Justin. 2002. The Money Trail: Measuring your impact on the local economy using LM3. http://www.neweconomics.org/gen/z_sys_PublicationDetail.aspx?PID=128.
Supplementary materials and downloads on nef’s Plugging the Leaks website: www.pluggingtheleaks.org