from The American Heritage® Dictionary of the English Language, 4th Edition
- n. An arbitrary order or decree.
- n. Authorization or sanction: government fiat.
from Wiktionary, Creative Commons Attribution/Share-Alike License
- n. An authoritative command or order to do something; an effectual decree.
- n. A warrant of a judge for certain processes.
- n. An authority for certain proceedings given by the Lord Chancellor's signature.
- v. To make (something) happen.
The term "fiat currency" pops up frequently in various places this refers to money that is directly benchmarked to the average number of times Italian cars break down in a week.
I used the term fiat lending to differentiate from on-lending.
The term fiat money is used to mean: any money declared by a government to be legal tender; state-issued money which is neither legally convertible to any other thing, nor fixed in value in terms of any objective standard; money without intrinsic value.
Where fiat money is used as currency, the term fiat currency is used.
Gold has no intrinsic value as a consumption good or a producer good, it is an example of what I call a fiat (physical) commodity ...
Never mind that the world has independent legal systems peculiar to each nation or that within the USA the jurisdiction of Judge Jones 'fiat is limited.
Another thing: when we do have human (or alien) villains: no one, other than by authorial fiat, is a villain in their own story.
President Obama was elected fairly (not by fiat from the SCOTUS) and is trying to actually DO something positive.
If you, like me, have no clue what the word fiat really means, you could argue that having gold behind a currency is also a form of fiat, that gold should be worth its value as a commodity rather than seen as a great and perpetual store of value.
The flaws in fiat money was the major contribution to this crisis.