Definition
Fiat money is currency that has value because a government declares it legal tender.
Why It Matters
It allows governments to manage money supply.
Example
The U.S. dollar.
Malone Global University
Malone Global University
Economics Glossary – Malone Global University
Fiat money is currency that has value because a government declares it legal tender.
It allows governments to manage money supply.
The U.S. dollar.