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It has no backing in the sense that it can be converted into something else. This money must be controlled if economic dislocations are to be avoided and the most serious of these are hyperinflation. It is a result of an excessive issue of money and requires a monetary reform which replaced the old money with new money. Monetary Policy in the USA is determined by a 12-member Federal Open Market Committee. The implementation of monetary policy require either changing the amounts of the monetary base (vault cash and deposit balances) or their uses or changing the behavior of people who anticipate changes in money supply
Every monetary policy rests on assumptions about what money is...
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