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.
The term derives from the Latin fiat, meaning "let it be done", as the money is established by government decree. Where fiat money is used as currency, the term fiat currency is used. Today, most national currencies are fiat currencies, including the US dollar, the euro, and all other reserve currencies, and have been since the Nixon Shock of 1971.
