Re:What is money, anyway?
by lottin on Monday March 28, 2022 @04:38AM
(#30828514)
You're right about central banks, but this is not what being backed means. When a currency is backed by another asset, it means that the issuer promises to redeem the currency for a pre-determined quantity of the underlying asset, which is not the case of fiat currencies (or crypto-currencies for that matter).
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Re:What is money, anyway?
by OscarCunningham on Monday March 28, 2022 @06:45AM
(#30829123)
Sure, but central banks do typically promise to hit an inflation target, which is similar in the sense that it's a promise for the money to have a certain value.
If a bank bought and sold gold to make a currency hit an inflation target, would that be commodity money or fiat?