View source for Fiduciary media

'''Fiduciary media''' consist of the proportion of perfect [[money substitutes]] which a bank issues but does not fully back by physical monetary units (i.e. gold or paper money) in their vaults. <ref>Huerta de Soto, Jesus. [http://mises.org/resources/2745/Money-Bank-Credit-and-Economic-Cycles "Money, Bank Credit, and Economic Cycles"], 2006, 187.</ref> Fiduciary media can exist in many forms including credit notes, checks or drafts.<ref>Schulak EM and Unterkofler H. [http://mises.org/resources/6136/The-Austrian-School-of-Economics-A-History-of-Its-Ideas-Ambassadors-and-Institutions "The Austrian School of Economics A History of Ideas, Ambassadors and Institutions"], 2011.</ref> When a bank increases the amount of fiduciary media in an economy, ceteris paribus, the purchasing power of money will decline.<ref>Huerta de Soto, Jesus. [http://mises.org/resources/2745/Money-Bank-Credit-and-Economic-Cycles "Money, Bank Credit, and Economic Cycles"], 2006, 700.</ref>   

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[[Category:Economic concepts]]
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