Fiat money

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Fiat money is legal tender, or currency (bank notes and coins), which has value only because a government says so. Fiat money such as US dollars can be used as an exchange for goods and services.


Alan Greenspan was an early critic of fiat money arguing that "Deficit spending is simply a scheme for the confiscation of wealth."[1] He thought the value of money should be backed by gold.

References[change | edit source]

  1. Greenspan, Alan (1966). "Gold and Economic Freedom" (in English). Retrieved 2009-11-15.