The Free Market Center
Fiat Value of Money
“Money gets its value from the State.” Or "Fiat money derives its value, not from an underlying commodity, but from state requirement that lenders accept paper money"
Fiat money has value because people use it, just like any other form of money. The problem with fiat money lies in the state’s control of its quantity. Changes in quantity effect marginal utility, therefore value, as with any other commodity.
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