⚠️Automatic translation pending review by an economist.
Fiat money, or « authority money, » corresponds to the current monetary system in most countries where currency is not convertible into gold at the central bank or any other form of store of value, while having virtually no intrinsic value. As such, it is a system based entirely on trust. It contrasts with the gold standard system, where everyone had the right to demand that their central bank provide them with gold in exchange for their banknotes. In a fiat money system, the only thing an individual can demand from their central bank is new banknotes in exchange for old banknotes, which is conceptually the same thing.
J.P.
