Fiat money

currency established as money by government regulation or law
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Fiat money is a currency (a medium of exchange) made as money, often by government laws. Fiat money does not have value. It has value only because a government gives its value, or because parties are taking part in exchange agree on its value.[1] It was used as an alternative to commodity money.[2]

References change

  1. Goldberg, Dror (2005). "Famous Myths of "Fiat Money"". Journal of Money, Credit and Banking. 37 (5): 957–967. doi:10.1353/mcb.2005.0052. JSTOR 3839155. S2CID 54713138.
  2. Walsh, Carl E. (2003). Monetary Theory and Policy. The MIT Press. ISBN 978-0-262-23231-9.