Social Sciences and the Law

Is fiat money stable?

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The circulation of fiat money may lead to inflation, whereas money redeemable in gold or other securities is held much less likely to do so. Under conditions of proper monetary management, however, fiat paper money can be a stable currency.

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Similar questions: What condition is necessary for fiat money to be stable? Is fiat money more likely to cause inflation than other forms of currency? Does fiat money cause inflation? [ Hide these questions ]

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