Fiat money


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Related to Fiat money: gold standard, Commodity money

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 ?
The conclusion reached so far--namely, that fiat money necessarily leads to collective corruption, and that fiat money is a logical result of public ownership of government--can be harmoniously integrated in Mises's interventionism critique.
In fact the whole transaction amounts to fiat money inflation.
This was a shortcoming of issuing specific amounts of fiat money for short periods of time.
The classical gold standard was a rules-based monetary system, in which the supply of money was determined by market demand-- not by central bankers--versus today's pure discretionary government fiat money regime.
Block (2009) counters that anyone who uses fiat money or buys government bonds is in effect supporting the state, which is why under the libertarian legal code there is an obligation to repudiate the public debt.
One of the main causes of the world economic crisis is the release of fiat moneys whose costs should be paid by the people of other countries," Rahimi said, addressing the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) forum in Tehran on Wednesday.
Von NotHaus, who once ran an organization called the National Organization for the Repeal of the Federal Reserve and Internal Revenue Codes, explicitly advertised his silver product as competition to federal fiat money.
This group rubbishes any talk of a silver and gold bubble and claims that the demise of fiat money, which they think is round the corner, will propel precious metals' rally to dizzying highs.
Roger Garrison or Robert Murphy lecturing Congress on the perils of fiat money might be the most edifying footage to air on C-SPAN since the channel launched on March 19, 1979.
In these environments, financial instruments such as fiat money and private debt can sometimes improve the efficiency of resource allocations by facilitating intertemporal and interspatial trades.
However, in this specific market, Prevacid[TM] is more efficient than fiat money in funding these interpharmacy exchanges, and as such, replaces the dollar as money for these transactions.
The founders also wanted gold and silver to be legal tender, not fiat money, nor should there be a central bank.