Definitions for fiat money
This page provides all possible meanings and translations of the word fiat money
Random House Webster's College Dictionary
paper currency made legal tender by a fiat of the government, but not based on or convertible into coin.
Category: Business, Government
Origin of fiat money:
money that the government declares to be legal tender although it cannot be converted into standard specie
Money that is given legal value or made legal tender for money debts by government fiat.
Fiat money is money that derives its value from government regulation or law. The term fiat currency is used when the fiat money is used as the main currency of the country. The term derives from the Latin fiat. Fiat money originated in 11th century China, and its use became widespread during the Yuan and Ming dynasties. During the 13th century, Marco Polo described the fiat money of the Yuan Dynasty in his book The Travels of Marco Polo. The Nixon Shock of 1971 ended the direct convertibility of the United States dollar to gold. Since then, all reserve currencies have been fiat currencies, including the U.S. dollar and the Euro.
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