The term ‘fiat money’ means currency that has value because the government says so.
✓ TRUE FACT
Fiat money isn’t backed by a commodity like gold; it’s backed by legal tender laws and trust in the issuer. In practice, central banks manage supply and interest rates, and inflation can rise if money supply grows faster than output over long periods.
🤯 "The term ‘fiat money’ means currency that has value because the government pinky-promised it."