INTERMEDIATE

Fiat Money

A money whose use is required by law - legal tender - and that is not linked to any good or commodity such as gold. 

Steve Horwitz - The Cost of Inflation

Lawrence Reed - Money and Inflation

Related Publications

ARCHIVE

Fiat Money: Inflation In France

JULY 29, 2009

ARTICLE

The Fallacy of Money is Wealth

JANUARY 28, 2009 by WILLIAM ANDERSON

If the process of creating more and more money by fiat (called inflation) goes on unchecked, as it did during the past decade, then not only does the value of money on the margin fall, but its growth triggers an unsustainable boom that ultimately collapses in a bust.

ARCHIVE

Inflation as Income Distribution

JANUARY 09, 2009 by SHELDON RICHMAN

The Federal Reserve has been pumping hundreds of billions of newly created dollars into "the economy." Much of that money has been sent to Wall Street to bailout large, struggling firms. But that's just the beginning. President-elect Obama says that since he needs to "stimulate the economy" we can look forward to trillion-dollar budget deficits for years to come. Even before the financial turmoil began, the deficit had approached $500 billion. (Not to worry, though--Obama says deficit spending will impose "fiscal discipline" in the future.) Of course, when the federal government spends more than it taxes, it has to get the extra money somewhere. Therein lies the treachery.

Related Freeman Articles

ARTICLE

Gold and Money, II

MARCH 23, 2011 by WARREN C. GIBSON

ARTICLE

Gold and Money

FEBRUARY 24, 2011 by WARREN C. GIBSON

ARTICLE

The Constitution And Paper Money

JULY 01, 1983 by CLARENCE B. CARSON

The United States Constitution does not mention paper money by that name. Nor does it refer to paper currency or fiat money in those words.[1] There is only one direct reference to the origins of what we, and they, usually call paper money. It is in the limitations on the power of the states in Article I, Section 10. It reads, "No State shall . . . emit Bills of Credit . . . ." Paper that was intended to circulate as money but was not redeemable in gold and silver was technically described as bills of credit at that time.

ARTICLE

The Value of Money

NOVEMBER 01, 1969 by HANS SENNHOLZ

Goods-induced and money-induced factors that affect the value of money.

Related Multimedia

MULTIMEDIA - VIDEO

Austrians and Inflation

MARCH 01, 2011

MULTIMEDIA - VIDEO

The Origin, Nature and History of Money

AUGUST 31, 2010

MULTIMEDIA - AUDIO

Money, Mischief and the March to Centralization

MAY 24, 2010

FEE President, Lawrence W. Reed, spoke to the Eighth Annual Abbeville Institute Scholars Conference about US economic history and the centralization of the monetary system on February 4, 2010.

MULTIMEDIA - AUDIO

Costs of Inflation

OCTOBER 01, 2009

MULTIMEDIA - AUDIO

Money & Inflation

SEPTEMBER 23, 2009

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CURRENT ISSUE

December 2014

Unfortunately, educating people about phenomena that are counterintuitive, not-so-easy to remember, and suggest our individual lack of human control (for starters) can seem like an uphill battle in the war of ideas. So we sally forth into a kind of wilderness, an economic fairyland. We are myth busters in a world where people crave myths more than reality. Why do they so readily embrace untruth? Primarily because the immediate costs of doing so are so low and the psychic benefits are so high.
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