Fiat money

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Fiat money

Nonconvertible paper money.

Fiat Money

Money that is not backed by anything other than a government trust. Fiat money has no intrinsic value; it only has value at all because all participants in an economy agree to trust the government issuing the currency. All modern money is fiat money. While deflation is possible for fiat money, it is much more susceptible to inflation.
References in periodicals archive ?
One of the most serious threats posed by a global central bank and world fiat currency is the fact that it would allow the emerging planetary regime to print its own money and finance its activities independently.
If all the advocates of a world fiat currency (a currency not backed by a precious commodity like gold) were to scream at once, workers in world capitals, business, centers, colleges, and news media may be deafened.
Competing currencies force the monetary authority to concentrate its attention on maintaining the value of the fiat currency.
As the fiat currency dominoes begin to fall, it is not difficult to imagine the pandemonium that will take place as investors attempt to flood into the only currency known to protect one's savings at such a time: gold and silver.
Despite the potential disastrous consequences of temporarily moving to an incontrovertible and fiat currency, the British faired well when compared to the French model.
Since virtually all governments in history have had the spending habits of a mob of drunken sailors, it's no surprise that every fiat currency has been completely devalued and destroyed over time.
One of these--the Soft Money approach--we are quite familiar with today: a process by which a committee of government bureaucrats manages a floating fiat currency of some sort, on a day-to-day and ad hoc basis.
Hall added, "The full faith and credit of fiat currency issuers is being eroded.
Strength in financial assets, both bonds and stocks, is not reflecting, as historically it has, strength in the underlying economy, but rather faith in central bank action in fiat currency economies.
In our opinion, there is no reason to own the fiat currency denominated bonds of any country or company.
This asymmetric tax treatment of the fiat currency and alternative currencies must be confronted in order for the market-driven currencies to become standards of value or units of account--whether or not they are successful as media of exchange.
dollar is the world's reserve fiat currency, peoples of the world actually do hold and store our little pieces of currency--not immediately laying claim to U.