Fiat Currency refers to a currency that is established by a government decree.
|Arguments in favor of||Arguments opposing|
|It provides leverage to the government in managing the money supply in the economy.|
|Fiat currency provides a mean to the government to control the money supply in the economy and hence influence the economic growth and employment trends.||By mismanaging the money supply through fiat currency, the government may have a significant negative influenece on the economy or may cause unintended consequences.|
|It functions based on trust in government's ability to manage its finances.|
|By creating a strong link between government finances and exchange value of the currency, fiat currency can increase the scrutiny on government finances.||Fading trust in government finances can have a significant erode the exchange value of the cash savings of the populaion in fiat currency.|