Chapter 1
1. For an extended version of this discussion of monetary systems, see Gerdes (1997).
2. It is erroneous to assert, as some economists do, that fiat money has no intrinsic value. From this perspective, the marginal subjective value of fiat money, when used for nonmonetary purposes, is zero. We know that is not the case. Examples of possible value generating nonmonetary uses for fiat money are using stacks of fiat money as doorstops, paperweights, or as kindling in the fireplace.
3. Had consumers preferred fiat money, issuers of fiduciary money would have voluntarily accommodated those preferences.
4. Some make the case that the U.S. government did not leave the gold standard until August 15, 1971. On that date, President Richard ...
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