<P> Critics of the prevailing system of fiat money argue that fiat money is the root cause of the continuum of economic crises , since it leads to the dominance of fraud , corruption , and manipulation precisely because it does not satisfy the criteria for a medium of exchange cited above . Specifically , prevailing fiat money is free floating and depending upon its supply market finds or sets a value to it that continues to change as the supply of money is changed with respect to the economy 's demand . Increasing free floating money supply with respect to needs of the economy reduces the quantity of the basket of the goods and services to which it is linked by the market and that provides it purchasing power . Thus it is not a unit or standard measure of wealth and its manipulation impedes the market mechanism by that it sets / determine just prices . That leads us to a situation where no value - related economic data is just or reliable . On the other hand , Chartalists claim that the ability to manipulate the value of fiat money is an advantage , in that fiscal stimulus is more easily available in times of economic crisis . </P>
what is money as a medium of exchange
fiat money