Dev.SN

The Bank of England Declares the Pound is Fiat

posted by LaminatorX on Tuesday March 25 2014, @03:15AM   
from the Fiat-£ dept.

buswolley writes:

"https://www.creditwritedowns.com/2014/03/boes-shar p-shock-monetary-illusions.html

In a new paper "Money creation in the modern economy," the Bank of England admits that the pound is a fiat currency, explains how it is created, why this matters, and why virtually everything that economic textbooks say about money is wrong.

The authority of the Bank of England on these matters is not easily dismissed, and can represent a shift in thinking among the financial elites from traditional models to fiat centric models."

• Interesting Tag line! But interesting article too Interesting Tag line! But interesting article too (Score: 3, Insightful) by elf on Tuesday March 25 2014, @09:57AM

  by elf (64) on Tuesday March 25 2014, @09:57AM (#20943)

  When first reading the tag line

  "The Bank of England Declares the Pound is Fiat"

  I was intrigued, because Fiat is not mentioned in the article at all nor is the probably more sensible alternative Flat.

  Editors : What has Fiat got to do with this article? :)

  On another note the article was quite interesting, coming from the UK, it was good to here from the people that have been pumping billions in to the economy by implementing quantitative easing. The conversation would apply to other nations too and its an interesting take on the text book model. I don't claim to fully understand it or the ramifications what happens in real life but the insight in to the magical world of central banks is much appreciated.

  p.s. How come an Aussy was writing an article on the UK economy?

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• Re:Interesting Tag line! But interesting article t (Score: 1) by dtremenak on Tuesday March 25 2014, @03:37PM

  by dtremenak (1051) on Tuesday March 25 2014, @03:37PM (#21148)

  "Fiat" in this context is latin, for "let it be."

  See also: http://en.wikipedia.org/wiki/Fiat_money [wikipedia.org]

  Parent