Loss of Backing
A fiat-money currency generally loses value once the issuing government or central bank refuses to further guarantee its value, but this need not necessarily occur. For example, the so-called Swiss dinar continued to retain value in Kurdish Iraq even after its legal tender status was withdrawn by its issuer, Iraq's central government.
Read more about this topic: Fiat Money
Famous quotes containing the words loss of, loss and/or backing:
“The greatest dangers have their allurements, if the want of success is likely to be attended with a degree of glory. Middling dangers are horrid, when the loss of reputation is the inevitable consequence of ill success.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)
“Unthinking people will often try to teach you how to do the things which you can do better than you can be taught to do them. If you are sure of all this, you can start to add to your value as a mother by learning the things that can be taught, for the best of our civilization and culture offers much that is of value, if you can take it without loss of what comes to you naturally.”
—D.W. Winnicott (20th century)
“Better risk loss of truth than chance of error—that is your faith-vetoer’s exact position. He is actively playing his stake as much as the believer is; he is backing the field against the religious hypothesis, just as the believer is backing the religious hypothesis against the field.”
—William James (1842–1910)