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About this quote

What does it mean?
Government currency is criticized for having value only because of state authority.
In plain terms
Paper money is worthless unless the government says it is valuable.
What can you take from it?
Fiat currency relies on state trust rather than intrinsic worth.

Where it applies

  • evaluating money
  • understanding fiat systems

Putting it to work

  • critiquing currency policy

Questions to consider

  • What gives money value?
  • Can paper money ever have intrinsic worth?

Another view

This view ignores the stability and utility that fiat currency provides.

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