'''Fiat money''' is #REDIRECT [[Fiat currency]] that is valuable only because it has been declared as such by a governing body and is required for settling taxes or other governmental debts. It is not backed fully by [[precious metal]] or any other resource. Fiat money's value is dependant on [[scarcity]]; [[inflation]] occurs when excessive fiat money is produced. The [[Dollar (U.S.)|U.S. Dollar]] is an example of fiat money.[[Category:Economics]]