Relationship of money to economy?
Economy encompasses the whole of buying and selling of goods and
services. Money is the currency used to buy and sell. Money is
either coins or paper that is symbolic of the wealth it represents.
Money backed by gold is stronger and more reliable than money
backed by copper. Fiat money is utterly useless as there is nothing
but consumer confidence to back it. Gold and even copper have been
around and backing currency for thousands of years, and will always
possess intrinsic value. Consumer confidence is as fickle as a 13
year old boy at a Sadie Hawkins dance and possess no intrinsic
value. A dollar floated as "fiat" is a vulnerable currency, and if
other forms of currency are entered into the same market economy
that are backed by money with intrinsic value the fiat dollar will
weaken as the money backed by wealth will strengthen.