The gold standard system was ceased by Nixon shock in 1971 and the value of money has been backed up by the trust in its government since then, which is fiat money. It means that currency of each nation has become guaranteed by trust, some kind of invisible value. Then what is trust in government based on? and what is trust in a nation? Since money is no longer backed up by gold, a material standard, we need to comprehend what the actual basis of the fiat money is. In the age of gold standard system, quantity of gold reserves restricted the entire amount of the currency (money) each nation...
The gold standard system was ceased by Nixon shock in 1971 and the value of money has been backed up by the trust in its government since then, which ...