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Topic: Fiat money


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In the News (Mon 22 Jul 19)

  
  Fiat money - Wikipedia, the free encyclopedia
Fiat money or fiat currency, is money that is current or legal tender as satisfaction for money debts by government fiat, that is by law.
The word fiat when considered in the context of "fiat money" is generally considered to stem from the Latin for "let it be", although there is an alternative school of thought that believes the word to be a corruption of the past tense of the latin fidere which means "to trust".
Fiat money is also associated with attempts to control trade, if individuals possess notes which are not redeemable outside of the control of a government, the idea is that they will have to purchase preferentially within the boundaries of the nation, rather than importing.
en.wikipedia.org /wiki/Fiat_money   (3476 words)

  
 Encyclopedia: Fiat money
Fiat money, by definition, does not have any intrinsic value, nor is it backed by anything other than the confidence holders have in the economy which is covered by the government which decrees it to have value.
Fiat money or Fiat currency (usually paper money) is a type of currency whose only value is that a government made a fiat (i.e.
Fiat money is a promise to pay by the issuer and does not necessarily have any intrinsic value.
www.nationmaster.com /encyclopedia/Fiat-money   (539 words)

  
 Encyclopedia article: Fiat money   (Site not responding. Last check: 2007-09-18)
Fiat money, by definition, does not have any intrinsic value (additional info and facts about intrinsic value), nor is it backed by anything other than the confidence holders have in the economy which is covered by the government which decrees it to have value.
What exactly is a "fiat" currency is a matter of some debate, with a spectrum of opinion that runs from hard money advocates which declare that anything other than a one to one currency basis is "fiat money", to a range of economic theories which hold that market dynamics enforce fiscal discipline.
The first historical example of fiat money was in China (A communist nation that covers a vast territory in eastern Asia; the most populous country in the world).
www.absoluteastronomy.com /encyclopedia/f/fi/fiat_money.htm   (2080 words)

  
 Money - Wikipedia, the free encyclopedia
The widespread acceptance of the fiat money is most frequently enhanced by the central authority mandating the money's acceptance under penalty of law and demands this money in payment of taxes or tribute.
Money is one of the most central topics studied in economics and forms its most cogent link to finance.
Bank savings are actually a kind of loans — savers loan their money to a bank at a low interest rate or merely in exchange for the benefit of convenience or its security (accepting that they lose a small amount of value to inflation).
en.wikipedia.org /wiki/Money   (2503 words)

  
 fiat money. The Columbia Encyclopedia, Sixth Edition. 2001-05   (Site not responding. Last check: 2007-09-18)
), inconvertible money that is made legal tender by the decree, or fiat, of the government but that is not covered by a specie reserve.
The circulation of fiat money may lead to inflation, whereas money redeemable in gold or other securities is held much less likely to do so.
Earlier, less stable examples of fiat paper money were the continentals issued by the American government during the Revolutionary War, the assignats issued during the French Revolution, and the greenbacks issued by the U.S. government during the Civil War.
www.bartleby.com /65/fi/fiatmone.html   (235 words)

  
 History of Fiat Money
In a fiat monetary system, the value of money is based on confidence, and once that confidence is gone, money irreversibly becomes worthless, regardless of its scarcity.
The first use of fiat money (called Greenbacks) in the United States was in 1862, it was used as a tool to pay for the enormous cost of the Civil War.
Fiat currencies reign worldwide leading to huge economic imbalances from country to country and was of the major contributing factors to the beginning of WW2.
www.ldusa.com /roger/fiat.htm   (1329 words)

  
 Read about Fiat money at WorldVillage Encyclopedia. Research Fiat money and learn about Fiat money here!   (Site not responding. Last check: 2007-09-18)
paper money, is a type of currency whose only value is that a government made a fiat (i.e.
In general, ultra-conservatives define fiat money stringently, and an opposition to fiat money is coupled with an opposition to
North Korea retain a strict military fiat and retain their own absolute control of currency, especially hard currency easily traded for goods on the Western markets.
encyclopedia.worldvillage.com /s/b/Fiat_money   (2061 words)

  
 Fiat Money
Anciently money was unknown, and there existed no terms by which merchandise could be precisely valued, but every one, according to the wants of the time and circumstances, exchanged things useless to him, against things which were useful; for it commonly happens that one is in need of what another has in excess.
In spite of a constitutional bar to un-backed paper money which existed at the time Abraham Lincoln was forced, in 1862, to issue the first trance of what was eventually $450,000,000 of "greenbacks" needed to finance the North's efforts during the civil war.
This brief treatment of the history of money reinforces that gold is simply not practicable as a universal money, but that it operates as an occasional money for rich trading societies, and more commonly as an agent of transfer during periods of currency implosion - whether hyperinflationary, political, or military.
www.baldwintrustgroup.org /Money/fiat_money.htm   (6972 words)

  
 Monetary History Glossary
Bank notes used as money to finance transactions (pay for things) which are not "backed" by a valuable commodity like gold or silver which could be exchanged against the note at a bank.
Fiat money is the only money used in the world today, but in the 19th century it was printed mainly to finance wars, because people didn't trust the government enough to forget the immense potential for abuse that this system had.
There are many definitions of the money stock, but they all include the monetary base, and add bank deposits of various flavors.
www.micheloud.com /FXM/MH/Glossary.htm   (1097 words)

  
 All About Money - Print Version
Without money, which is in effect an intermediate good used for trading, it would become very difficult to have a division of labor, i.e., specialization, and everyone’s standard of living would suffer.
The generation of fiat money, which is produced without work—how much more work is involved in producing a $100 bill as opposed to a $1 dollar bill?—dilutes that which has been saved and that which has been promised for future payment.
With fiat money, when money is diluted by the creation of additional money out of nothing, the property rights of savers and those who have been promised future payments, such as pensions, are violated.
www.gold-eagle.com /editorials_01/parks021701pv.html   (2384 words)

  
 Fiat Money Systems
The extremes reached under this fiat money system has been perpetuated much longer and deeper than any I have studied, and I believe this is due to the fact that it is consumption-based, and Joe Six-pack whom represents the masses, has been sucked in by the lure of easy, unearned consumption.
He has pulled out all the stops to maintain the illusions of fiat money credibility, and while the system is doomed, there is still time for individuals to save themselves, but they need to act quickly.
Examples of Prior Attempts at Fiat Money Systems 20 BC - Roman Empire - After a highly successful period of empire building, Augustus, ordered mines in Spain and France to be mined 24 hours a day to support his tremendous infrastructure costs.
www.gold-eagle.com /editorials_04/greene032104.html   (1984 words)

  
 What Has Government Done to Our Money? Fluctuating Fiat Currencies, March 1973 -?
Before the dollar was cut loose from gold, keynesians and Friedmanites, each in their own way devoted to fiat paper money, confidently predicted that when fiat money was established, the market price of gold would fall promptly to its non-monetary level, then estimated at about $8 an ounce.
This volatility is the consequence of the national fiat money system, which fragmented the world's money and added artificial political instability to the natural uncertainty in the free market price system.
The Friedmanite dream of fluctuating fiat money lies in ashes, and there is an understandable yearning to return to an international money with fixed exchange rates.
www.mises.org /money/4s9.asp   (1151 words)

  
 Y2K Fiat Money
MONEY where the units used in trade have a high intrinsic value due to the difficulty of obtaining, rarity and desirability of their content.
The power of arbitrarily printing money at the hands of government was one of the powers that was severely limited by the Constitution (now generally ignored).
Fiat coins will come to trade at the price of their metals, too (that of nickel, copper, aluminum, and zinc).
www.dixiebiz.com /y2Kfiat.htm   (597 words)

  
 The Danger From our Fraudulent Fiat Money: - Gold & Silver Forum   (Site not responding. Last check: 2007-09-18)
The creators of fiat money—banks and central banks—despite their vastly inferior product, have succeeded because of coercion, misrepresentation and nondisclosure, and also in part because proponents of honest monetary weights and measures have left the playing field.
Fiat money is money that is created out of nothing and without any work, usually by banks or central banks.
"forced tender"), fiat money would be perceived as bogus, and hardly anyone would use it, let alone save it and permit their pensions to be denominated in it.
goldismoney.info /forums/showthread.php?s=&threadid=2870   (1417 words)

  
 Helicopter Money: Irredeemable Fiat Money and the Liquidity Trap
The Paper provides a formalization of the monetary economics folk proposition that government fiat money is an asset of the holder (the private sector) but not a liability of the issuer (the state).
Money is 'net wealth' in the limited sense that, after consolidation of the intertemporal budget constraints of the private and public sectors, the present value of the terminal money stock remains a component of comprehensive household wealth.
With irredeemable fiat money, weak restrictions on the monetary policy rule suffice to rule out liquidity trap equilibria (that is, equilibria in which all current and future short nominal interest rates are at their lower bound) that are also rational expectations equilibria.
ideas.repec.org /p/cpr/ceprdp/4202.html   (505 words)

  
 Amazon.com: Political Economy of Money : Emerging Fiat Monetary Regime: Books   (Site not responding. Last check: 2007-09-18)
Since 1971, when the Bretton Woods gold exchange standard ended, the world has been on a fiat monetary regime, with various fiat currencies managed according to the discretion of the issuing country.
This study examines the emerging fiat regime in a world of nation states determined to preserve their sovereignty from erosion by the global economy placing this process in its economic, historical, and political perspective.
The resurgence of interest in monetary and financial affairs can be attribute in good part to the ease with which "money" slips into the political arena to become a singularly important political issue.
www.amazon.com /exec/obidos/tg/detail/-/0275965724?v=glance   (582 words)

  
 [No title]
All United States coin and currency (and virtually all in the world) is fiat money.
Unlike the commodity money on which our nation was built, fiat money consists of worthless coins with little or no precious metal in them (if melted down, they would not be worth their face value), and of paper currency that cannot be redeemed for gold or silver and is, in fact, backed by absolutely nothing.
Considering that the cost of printing paper money is minimal, the federal government makes an enormous windfall profit whenever it places new bills in circulation.
www.fdungan.com /money.htm   (1465 words)

  
 Assignats -- Fiat Money Inflation in France
The article emphasizes the fact that the use of fiat money in France was in its beginning a sincere effort on the part of intelligent members of the National Assembly to stem the tide of misery and wretchedness which had brought about the Revolution in 1789.
The decline in the purchasing power of paper money was in obedience to the simplest laws in economics, but France had now gone beyond her thoughtful statesmen and taken refuge in unwavering optimism, giving any explanation of the new difficulties rather than the right one.
As a consequence, the issues of paper money were continued in increased amounts, on the old theory that they were guaranteed by the solemn pledge of these lands belonging to the state.
www.usagold.com /gildedopinion/assignats.html   (14579 words)

  
 ClubConspiracy - Forum - Opinions - Fiat Money
Fiat money is strictly forbidin in US Constitution...
Basically our money isnt worth the paper its printed on..and the only thing that keeps this alive is our trust that its worth something..
Once they grasp that money is created out of thin air and the supply is in PRIVATE hands...things start moving.
www.clubconspiracy.com /modules/newbb/viewtopic.php?topic_id=1479&forum=23   (925 words)

  
 Foldvary: Iraq: Avoid Fiat Money!
It would be a great error to copy central banking and fiat money just because that is the current monetary fad.
To anchor the value, the Iraqi money should be convertible to some commodity at a fixed exchange rate.
In contrast, with fiat money, inflation benefits the government chiefs as a tax on money holdings, easier to impose than taxes on income or sales.
www.progress.org /2003/fold296.htm   (800 words)

  
 Reading List   (Site not responding. Last check: 2007-09-18)
In the last century, everyone knew about the "money issue." Major political campaigns were fought over it from the time of the Revolution up until the Presidential election of 1896--William (pro-Gold) McKinley vs. William Jennings (pro-Silver/"Cross of Gold") Bryan.
Not only do the "Baby Boomers" know little of these matters, but their children, "Generation X," have never even heard the phrase "fiat money." There is a burning need to bring people up the learning curve about the money issue.
Otherwise, when our fraudulent fiat monetary system collapses, the blame will be placed on scapegoats, as is now occurring all over the world: "crony capitalists" in East Asia; "currency speculators" in Indonesia; and "The Jews" in Malaysia.
www.fame.org /ReadingList.asp   (528 words)

  
 Financial Sense University ~ Fiat Money Systems by Richard J. Greene 03/24/2004   (Site not responding. Last check: 2007-09-18)
920 AD China experiments with paper money - It takes several hundred years but the system is abandoned due to unacceptable levels of inflation as money printing exceeded production.
1716 AD John Law convinced France to use paper money and declared all taxes must be paid with it to gain acceptance.
1934 AD President Roosevelt revalued gold from its official price of $20.67 to $35 an ounce in an attempt to print more money, with the hope that this would lift us out of the depression.
www.financialsense.com /fsu/editorials/2004/0324.html   (2034 words)

  
 Amazon.com: Fiat Money Inflation in France: How It Came, What It Brought, and How It Ended: Books: Andrew Dickson White   (Site not responding. Last check: 2007-09-18)
In 1790 the French people, by general acquiescence, embarked upon what they believed to be a harmless experiment in currency inflation.
The story of "Fiat Money Inflation in France" is one of great interest to legislators, to economic students, and to all business and thinking men.
It records the most gigantic attempt ever made in the history of the world by a government to create an inconvertible paper currency, and to maintain its circulation at various levels of value.
www.amazon.com /exec/obidos/tg/detail/-/1410205835?v=glance   (887 words)

  
 AllRefer.com - fiat money (Money, Banking, And Investment) - Encyclopedia
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fiat money[fI´ut, fI´at] Pronunciation Key, inconvertible money that is made legal tender by the decree, or fiat, of the government but that is not covered by a specie reserve.
More articles from AllRefer Reference on fiat money
reference.allrefer.com /encyclopedia/F/fiatmone.html   (310 words)

  
 fiat money on Encyclopedia.com   (Site not responding. Last check: 2007-09-18)
(fī´et, fī´ăt), inconvertible money that is made legal tender by the decree, or fiat, of the government but that is not covered by a specie reserve.
FEATURE LPG SMART: Save the planet " and your money; Converting your car to alternative fuel can be costly.
Fiat Plans Big Layoffs As Stock Price, Sales Falter
www.encyclopedia.com /html/f1/fiatmone.asp   (392 words)

  
 EconPapers: Fiat Money, Intrinsic Properties, and Government Transaction Policy   (Site not responding. Last check: 2007-09-18)
A possible answer is that these objects have intrinsic properties that make them better candidates to be used as media of exchange.
Another answer stresses the fact that unconvertible fiat money will not easily appear unless there is a centralized institution that favors its use.
In order to do this, we take a model of commodity money in which fiat money does not play any significant role and modify it to examine under which circumstances fiat money might come to circulate as medium of exchange.
econpapers.repec.org /paper/upfupfgen/504.htm   (264 words)

  
 MSN Encarta - Dictionary - fiat money
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money decreed by government: paper money that a government declares to be legal tender although it is not based on or convertible into coins and therefore depends on government decree to determine its value
encarta.msn.com /encnet/features/dictionary/DictionaryResults.aspx?refid=1861690241   (82 words)

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