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'''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>   
'''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. [https://freecapitalists.org/books/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. [https://freecapitalists.org/books/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. [https://freecapitalists.org/books/money-bank-credit-and-economic-cycles/ "Money, Bank Credit, and Economic Cycles"], 2006, 700.</ref>   


==References==
==References==

Latest revision as of 04:22, 16 August 2026

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. [1] Fiduciary media can exist in many forms including credit notes, checks or drafts.[2] When a bank increases the amount of fiduciary media in an economy, ceteris paribus, the purchasing power of money will decline.[3]

References

  1. ↑ Huerta de Soto, Jesus. "Money, Bank Credit, and Economic Cycles", 2006, 187.
  2. ↑ Schulak EM and Unterkofler H. "The Austrian School of Economics A History of Ideas, Ambassadors and Institutions", 2011.
  3. ↑ Huerta de Soto, Jesus. "Money, Bank Credit, and Economic Cycles", 2006, 700.

Links

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