Hard Money

Historically this phrase was used to mean, quite literally, money that was hard, like gold or silver, as opposed to paper notes. The term is still used today, especially by the ‘hard money’ lobby in the United States, spearheaded by the National Committee for Monetary Reform, that would bring back gold as the monetary standard. A broader definition now embraces ‘hard currency’, which comprises such major currencies as the dollar, the Deutschemark, sterling, the Swiss franc and the yen. These are seen as ‘hard’ in comparison with the rapidly depreciating paper of some developing nations and for that reason have the appeal that hard money had in earlier times.