At the moment of introduction of Euro, all participating local currencies were fiat money
Let's examine some of the adverse effects of fiat money
that Bernanke and company choose to ignore.
Following its successful use of fiat money
in 1690, Massachusetts made multiple issues of paper currency to finance its involvement in Queen Anne's War (1702-1713).
Free-market money within a trusted network of private contracts differs fundamentally from an inconvertible fiat money
supplied by a discretionary central bank that has the power to create money out of thin air and to regulate banks and nonbank financial institutions.
They claimed that the fiat money
was inflationary and leads to the depreciation of currency, thus, the economy will be in recession and simultaneously will give effect to the hike of NPL.
Taking subjective preferences seriously, Friedrich Hayek envisioned the possibility of private fiat money
nearly four decades ago.
This scheme is based upon the limitless amounts of debt ridden fiat money
the banks are able to create out of thin air due to the fractional reserve banking system.
is no kind of money at all but a debt owed by a government to the people forced to use inherently worthless paper as a means of exchange on pain of arrest and imprisonment.
It is unlikely that the RBI's attempt to unlock the idle gold stock and make gold behave like fiat money
will affect its inelastic demand, particularly given the rising middle class.
We have lived in a purely fiat money
system ever since -- meaning that our money's value is not backed by gold or any other physical item.
Indeed, the very fact that the link between fiat money
and gold has been broken indicates this is so.
Summary: TEHRAN (FNA)- Iranian First Vice-President Mohammad Reza Rahimi lambasted the US and other world powers for releasing fiat money
, and called it the main cause of global recession and poverty.