[Zygote]

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I've seen this asserted before but never satisfactorily explained. Can you more specifically explain what you mean by this?

I can only think of one way a nation's productive economy can be said to "back" a currency in the way, say, gold does. The citizens are obligaed to accept the notes for the things they produce. But isn't this another way of referring to what you called the "decreed aspect of government paper". Prior to now I have believed that decree is the only thing giving the paper value, and unless you can tell me what you mean by "the economy backs it" I will be forced to continue so.


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The decree is the only thing that gives value. I should have made more clear that my ideas about fiat money assumed the decree is entirely and thoroughly enforced without costs.