Difference between revisions of "Fiat Money"
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(New page: '''Fiat''' money is Money that isn't backed by any actual value, unlike the Gold Standard, and which has no inherent value. Most modern countries use fiat currency, which is suppo...) |
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| − | '''Fiat''' money is [[ | + | '''Fiat''' (Latin: ''it shall be'') [[money]] is [[currency]] that isn't backed by any actual value, such as the [[Gold Standard]], and which has no inherent value. Most modern countries use fiat currency, which is supported soley by people's willingness to accept it and the government's power to force people to accept it. |
| − | Fiat money often results in [[ | + | Fiat money often results in [[inflation]] when the government is unstable. |
[http://www.gold-eagle.com/editorials_04/greene032104.html Fiat Money Systems] | [http://www.gold-eagle.com/editorials_04/greene032104.html Fiat Money Systems] | ||
[{Category:Economics]] | [{Category:Economics]] | ||
Revision as of 22:00, May 28, 2007
Fiat (Latin: it shall be) money is currency that isn't backed by any actual value, such as the Gold Standard, and which has no inherent value. Most modern countries use fiat currency, which is supported soley by people's willingness to accept it and the government's power to force people to accept it.
Fiat money often results in inflation when the government is unstable.
[{Category:Economics]]