fiat currency
Decreed legal tender
Fiat currency is money that has value because a government declares it legal tender, not because it's backed by a physical commodity like gold or silver.
Most modern currencies—dollars, euros, yen—are fiat currencies.
The term comes from the Latin for "let it be done," suggesting value by decree.
Critics argue fiat money enables inflation through unlimited printing; defenders note it gives governments flexibility to manage economies.
- banknotesPaper currency notes
- central bankNational currency management institution
- printing moneyManufacturing legal tender
- inflationSustained price level increase
- paper moneyCurrency in bill form
quantitative easing · monetary policy · money supply · cash · exchange rate · revaluation · euro · mint · greenback · government · treasury · dollar · debt · sovereign debt · deficit · legal fiction · hyperinflation · depreciation
- currencydollar, euro, pound, yen, peso
- currenciesdollar, pound, euro, yen, peso
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- currency historygold standard, silver standard, bimetallism, paper money, coinage
- currency typesgold standard, dollarized
- monetary policyinflation, central banking, deflation, central bank, money supply
fiat currencygold standard
Measure of ultimate quality
hard money · gold · silver · specie · bullion
fiat currencygold standard
Measure of ultimate quality
Bretton Woods system · silver standard · barter · hard currency