The use of the expression “funny money” by Austrians to refer to bank money created by fractional reserve banking is a nothing but a loaded term, a semantic trick with dishonest rhetoric using the appeal to emotion fallacy.Read it at Social Democracy for the 21st Century
The term “funny money” implies that fractional reserve (FR) credit money/bank money is somehow illegal or fraudulent. This is nonsense. Modern FR banking is fully legal in Western nations and their offshoots, and historically has been conducted under the framework of themutuum loan contract (loan for consumption) under European civil/common law systems influenced by Roman law. FR banking goes right back to the ancient Roman Republic.
“Funny Money”: A Loaded Phrase
by "Lord Keynes"