fiat money
Government-backed tender
Fiat money is currency 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 are fiat money—the dollar, euro, and yen have no intrinsic value beyond the trust people place in issuing governments.
Critics warn that fiat money enables inflation when governments print too much of it.
Paper currency notes
- coinsMetal money units
- cashReady spending funds
- notesBrief written records
- legal tenderOfficially recognized payment medium
bills · circulation · denominations · wallet · transaction · payment · exchange · funds
National currency management institution
- monetary policyCentral bank economic controls
- quantitative easingAsset purchases to boost economy
- interest ratesPrice paid for borrowing
- reserve currencyGlobally held foreign tender
liquidity · exchange rate · federal reserve · treasury · mint · issuer · currency manipulation
Lacking any value
- unbackedWithout financial or moral support
- intrinsic valueWorth independent of circumstance
- gold standardMeasure of ultimate quality
- cryptocurrencyEncrypted decentralized money
debasement · currency collapse · petrodollar · currency crisis
Extreme rapid price escalation
- devaluationLowering of currency worth
- purchasing powerEconomic spending ability
- cost of livingPrice of basic necessities
- price levelAggregate cost measurement
cost-push · indexation · inflation hedge · real value · nominal value
Supreme independent authority
- government-backedSupported by public authority
- decreeAuthoritative legal command
- mandateFormal authoritative directive
- state authorityGovernment's legitimate power
regulation · legislation · fiscal policy · taxation · public debt · government spending · national currency · state control
banknotes
Paper currency notes
bills · legal tender · circulation · denominations · wallet · transaction · payment · exchange · funds · spending
central bank
National currency management institution
- monetary policyCentral bank economic controls
- quantitative easingAsset purchases to boost economy
- interest ratesPrice paid for borrowing
reserve currency · liquidity · exchange rate · federal reserve · treasury · mint · issuer · currency manipulation
worthless
Lacking any value
- unbackedWithout financial or moral support
- intrinsic valueWorth independent of circumstance
- gold standardMeasure of ultimate quality
cryptocurrency · debasement · currency collapse · petrodollar · currency crisis
hyperinflation
Extreme rapid price escalation
- devaluationLowering of currency worth
- purchasing powerEconomic spending ability
- cost of livingPrice of basic necessities
price level · cost-push · indexation · inflation hedge · real value · nominal value
sovereignty
Supreme independent authority
- government-backedSupported by public authority
- decreeAuthoritative legal command
- mandateFormal authoritative directive
state authority · regulation · legislation · fiscal policy · taxation · public debt · government spending · national currency · state control · monetary sovereignty
- currencydollar, euro, pound, yen, peso
- moneydollar, euro, coin, cash, pound
- economic historystock market crash, Industrial Revolution, trade routes, Great Depression, gold standard
- currency historygold standard, silver standard, bimetallism, coinage, minting
- monetary policyinflation, central banking, deflation, central bank, interest rates
- Money Historycoins, currency, coinage, gold coins, silver coinage
fiat moneygold standard
Measure of ultimate quality
hard money · sound money · silver standard · specie · bullion
fiat moneycoinage
Invented term or currency
gold coins · silver coins · trade goods · shell money · barter