BROWSE

Hard Money

What is 'Hard Money'

Hard money consists of funding by a government or organization that is repetitive, rather than a one-time grant. Examples include ongoing government daycare subsidies or firms that pay annual scholarships to post-secondary students.

2. Describes gold/silver/platinum (bullion) coins. A government that uses a hard money policy backs the value of the currency it uses with a hard, tangible and lasting material that will retain its relative value over time.

Explaining 'Hard Money'

1. Governments and organizations prefer hard money because it provides a predictable stream of funds.

2. For example, in the early 1900s, the U.S. dollar was backed by the value of gold. Today, most countries use fiat money, which is made legal tender by government decree but has no intrinsic value of its own.


Further Reading


Wage bargaining, hard money and economic performance: theory and evidence for organized market economies
www.jstor.org [PDF]
… Roubini, 'Macroeconomic Policy and Elections in OECD Democracies' Economics and Politics … Commitment in Monetary Policy: Credibility versus Flexibility', American Economic Review, 82 … Wage Bargaining, Hard Money and Ec Performance: Theory and Evidence fo Organized …

From hard money to branch banking: California Banking in the gold-rush economyFrom hard money to branch banking: California Banking in the gold-rush economy
online.ucpress.edu [PDF]
… Roubini, 'Macroeconomic Policy and Elections in OECD Democracies' Economics and Politics … Commitment in Monetary Policy: Credibility versus Flexibility', American Economic Review, 82 … Wage Bargaining, Hard Money and Ec Performance: Theory and Evidence fo Organized …

Unrepresentative information: The case of newspaper reporting on campaign financeUnrepresentative information: The case of newspaper reporting on campaign finance
academic.oup.com [PDF]
… Roubini, 'Macroeconomic Policy and Elections in OECD Democracies' Economics and Politics … Commitment in Monetary Policy: Credibility versus Flexibility', American Economic Review, 82 … Wage Bargaining, Hard Money and Ec Performance: Theory and Evidence fo Organized …

Hard Heads, Soft Money? West German Ambivalence about Currency Reform, 1944-1948Hard Heads, Soft Money? West German Ambivalence about Currency Reform, 1944-1948
www.jstor.org [PDF]
… Roubini, 'Macroeconomic Policy and Elections in OECD Democracies' Economics and Politics … Commitment in Monetary Policy: Credibility versus Flexibility', American Economic Review, 82 … Wage Bargaining, Hard Money and Ec Performance: Theory and Evidence fo Organized …

Did firms profit from soft money?Did firms profit from soft money?
www.liebertpub.com [PDF]
… Roubini, 'Macroeconomic Policy and Elections in OECD Democracies' Economics and Politics … Commitment in Monetary Policy: Credibility versus Flexibility', American Economic Review, 82 … Wage Bargaining, Hard Money and Ec Performance: Theory and Evidence fo Organized …

Equifinality in open systems: Explaining the phenomenon of hard money mortgagesEquifinality in open systems: Explaining the phenomenon of hard money mortgages
search.proquest.com [PDF]
… Roubini, 'Macroeconomic Policy and Elections in OECD Democracies' Economics and Politics … Commitment in Monetary Policy: Credibility versus Flexibility', American Economic Review, 82 … Wage Bargaining, Hard Money and Ec Performance: Theory and Evidence fo Organized …

An empirical comparison of published replication research in accounting, economics, finance, management, and marketingAn empirical comparison of published replication research in accounting, economics, finance, management, and marketing
www.sciencedirect.com [PDF]
… Roubini, 'Macroeconomic Policy and Elections in OECD Democracies' Economics and Politics … Commitment in Monetary Policy: Credibility versus Flexibility', American Economic Review, 82 … Wage Bargaining, Hard Money and Ec Performance: Theory and Evidence fo Organized …

Micro-finance evangelism,'destitute women', and the hard selling of a new anti-poverty formulaMicro-finance evangelism,'destitute women', and the hard selling of a new anti-poverty formula
www.tandfonline.com [PDF]
… Roubini, 'Macroeconomic Policy and Elections in OECD Democracies' Economics and Politics … Commitment in Monetary Policy: Credibility versus Flexibility', American Economic Review, 82 … Wage Bargaining, Hard Money and Ec Performance: Theory and Evidence fo Organized …

Between a rock and a hard place: The grand coalition's response to the economic crisisBetween a rock and a hard place: The grand coalition's response to the economic crisis
www.tandfonline.com [PDF]
… Roubini, 'Macroeconomic Policy and Elections in OECD Democracies' Economics and Politics … Commitment in Monetary Policy: Credibility versus Flexibility', American Economic Review, 82 … Wage Bargaining, Hard Money and Ec Performance: Theory and Evidence fo Organized …



Q&A About Hard Money


What are some examples of hard money?

Examples include gold, silver, and other precious metals.

What does hard money consist of?

Hard money consists of funding by a government or organization that is repetitive, rather than a one-time grant. Examples include ongoing government daycare subsidies or firms that pay annual scholarships to post-secondary students.

How do governments use hard money policies?

Governments use hard money policies to provide for the needs of their citizens through grants and other forms of aid.

What are some examples of countries using fiat currency today?

Most countries use fiat currency today, which has no intrinsic value but is made legal tender by government decree and used as an accepted medium for exchange in trade transactions.

How much value does hard money have in relation to soft money?

Hard currency has more value than soft currency because it cannot be easily counterfeited. It also holds its value better over time. Soft currencies tend to depreciate quickly because they are not backed by anything tangible like gold or silver. They are only backed by the government that issues them and their ability to collect taxes for goods and services provided by that government.

Who uses hard money policies?

Governments and organizations prefer hard money because it provides a predictable stream of funds.

Where does the term "hard money" come from?

The term comes from the fact that it is difficult to counterfeit and can be used as a medium of exchange.

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