Debasement
Debasement is the practice of lowering the value of currency. It is particularly used in connection with commodity money such as gold or silver coins. A coin is said to be debased if the quantity of gold, silver, copper or nickel is reduced. Fiat or paper money is debased when volume of money printed is greater than demand. This reduces the value of paper money and causes monetary-based inflation. In contrast to commodity money in which each coin is changed, fiat currency only requires electronic or physical printing to decrease its value.
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Famous quotes containing the word debasement:
“It is pretty obvious that the debasement of the human mind caused by a constant flow of fraudulent advertising is no trivial thing. There is more than one way to conquer a country.”
—Raymond Chandler (1888–1959)