Where does fiat collide?

In monetary economics, fiat money is money that has value not because it is a commodity or redeemable for one, but because an authority declares it legal tender and people accept it in exchange. Kiyotaki and Wright's 1989 On Money as a Medium of Exchange modelled how such intrinsically worthless tokens can circulate as money once everyone expects others to take them. The referent is a token whose acceptability rests on convention and decree rather than material worth, and it is unrelated to a demarcation line in space beyond the Latin root meaning 'let it be done'.[1]

Unit

A medium of exchange whose acceptability rests on decree and convention

Recovery means

Not applicable

Measured by

Studied through acceptability, the price level, and the conditions under which the money is held and circulates

In formal ontology, a fiat boundary is a boundary that exists only because people draw it (a line of latitude, a property line, a state border across open land) as opposed to a bona fide boundary marked by a real physical discontinuity such as a coastline or a surface of skin. Smith and Varzi's 2000 Fiat and Bona Fide Boundaries introduced the distinction to analyse how objects and regions are carved out partly by the world and partly by human stipulation. The referent is a demarcation imposed by convention rather than found in nature (a concept in the ontology of space) related to money only through the shared meaning of being established by decree.[2]

Unit

A spatial boundary fixed by human stipulation rather than physical discontinuity

Recovery means

Not applicable

Measured by

Analysed conceptually by contrast with bona fide (physically grounded) boundaries