Fiat money is any currency that derives its value from government - TopicsExpress

Fiat money is any currency that derives its value from government interference and regulation instead of tangible assets. The Chinese were the first on record to use fiat money around 1000 CE, during the Song dynasty, and since then numerous countries have attempted to base the expansion of entire dynasties on fiat money. There is only one problem with this economic policy – every single time, fiat money has failed. Its value eventually returns to its true worth – a big fat zero on the ledger books.