Gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. As of 2014 no nation uses a gold standard as the basis of its monetary system, although many hold substantial gold reserves. A total of 174,100 tonnes of gold have been mined in human history- 2012. ------------------------------------------------------- Fiat money is currency which derives its value from government regulation or law. It differs from commodity money, which is based on a good, often a precious metal such as gold or silver, which has uses other than as a medium of exchange. The term derives from the Latin fiat (``let it Be ``). --------------------------------------------------------- Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy
Posted on: Fri, 26 Sep 2014 05:05:05 +0000
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