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Clad A coin made of different metals. Fine Silver The purity of a precious metal Base Metal A non-precious metal like copper or nickel Token A disk of base metal which can be used as a substitute for a coin Double Digit Inflation Prices increases rising at 10 to 99 percent per year due to inflation Welfare Program A government program for giving away money or goods, usually to poor people Subsidy A government program tax money away, usually to rich people or large companies Law of Economics An unchanging fact of life which deals with production and distribution of wealth. Tanstaafl Almost nothing is free, someone must pay for it Counterfeiting To make something that is fake or phonylly overvalued money. Clipping Shaving the edges of a coin in order to get some of the precious metal from the coin Reeding The notches on the edge of a coin Debasing Reducing the value of a coin by reducing the amount of precious metal in it. Gresham's Law Bad money drives good money out of circulation. People hoard good money and trade with legally overvalued money. Law of supply and demand When the supply of something goes up, the price per unit of that thing goes down Inflation An increase in the amount of money which causes the money to lose value, so the prices rise Dollar A one-ounce ingot of silver Money The most easily traded thing in a society Coin A wafer or disk of precious metal Hallmark The mint-mark of a coin which tells who made the coin Banknote Today, it is paper money. Originally, it was an IOU from a bank Legal Tender Law A law which provides for the punishment of anyone who refuses to accept the legal tender money Fiat Money Legal tender money Runaway Inflation When prices rise rapidly, every few hours. Depression The correction period following an inflation. Recession The beginning of a depression that never went all the way. Deflation A decrease in the ammount of money. Velocity The speed at which money changes hands. Demand for Money The desire to hold money rather than trade it. Business Cycle Prosperity followed by recession followed by prosperity followed by recession, and so forth.