Fiat money

Fiat money

Fiat money is used as a medium of exchange in most modern economies, and is used to buy goods and services, pay taxes, and settle debts. Most currencies in the world today are fiat currencies, including the US dollar, the euro, the Japanese yen, and the British pound. The value of fiat money is subject to fluctuations due to a variety of factors, including inflation, interest rates, and geopolitical events.