[95] Fiat Currency Meme

The use of fiat money became popular in the 20 th century as governments and banks moved in to protect their economies from the frequent busts of the business cycle.

[93] Fiat Currency Meme . Advantages and disadvantages of fiat currency. The rest of the meme world has a more mixed opinion of the currency and its prospects. Fiat money in a broad sense all kinds of money that are made legal tender by a government decree or fiat.

What it is and why it s better than a gold standard the value of money has to be has to be based on something of value. The value of fiat money is derived from the relationship between supply and. Fiat money is a currency a medium of exchange established as money often by government regulation but that does not have intrinsic value value independent of the nominal value such as a precious metal might have.

The term is however usually reserved for legal tender paper money or coins that have face values far exceeding their commodity values and are not redeemable in gold or silver. A fiat currency or fiat money is one example. The most important feature of fiat money is the stability of its value unlike commodity based money like gold copper and silver.