Money that the government declares to be legal tender although it cannot be converted into standard specie
Noun
money that the government declares to be legal tender although it cannot be converted into standard specie
Usage Examples
A system of capitalism presumes sound money, not fiat money manipulated by a central bank. Capitalism cherishes voluntary contracts and interest rates that are determined by savings, not credit creation by a central bank.
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Other Usage ExamplesThus, the use of fiat money is more justifiable in financing a depression than in financing a war.