Fiat money意思

"Fiat money" is a term used to describe currency that has value because a government has declared it to be legal tender, rather than because it is backed by a physical commodity like gold or silver. The word "fiat" means "let it be done" in Latin, and in this context, it refers to the government's decree that the currency is valid for all debts, public and private.

Fiat money gives governments the ability to control the money supply in their economies, which can be used to stabilize the economy and prevent deflation. However, it also means that the value of the currency can be affected by the government's economic policies, and if people lose faith in the government or the economy, the value of the currency can decline.

Most modern currencies, including the US dollar, the euro, and the Japanese yen, are fiat currencies.