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. ^[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

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

Links

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[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.

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