money

Fiat currency is paper money created by government decree that is not backed by a physical asset with intrinsic value. As of 2020, there are approximately 180 fiat currencies worldwide.

Examples of fiat currencies are the U.S. dollar, the European Euro, and Japanese Yen, among many others.

To understand how fiat currencies work, let’s look at one specific example, the U.S. dollar. Of course, thanks to globalization, the same system that applies to the U.S. dollar now applies to fiat currencies worldwide.  [Read more…] about What Is Fiat Currency? And How Does It Affect You?

Money supply is the total amount of money circulating in the economy at a particular time, often measured on a country-by-country basis.

The reason that money supply is important is that it can drive inflation or deflation, affect the price of investments, influence exchange rates, and in some cases, impact economic and business cycles.

For this reason, money supply is tracked by the government or central bank of each country to keep track of a nation’s economic health and stability. [Read more…] about What is Money Supply? The Answer in Layman Terms.