Fiduciary money is paper money that is fully redeemable in gold and silver coin. Fiat Money is unredeemable paper money. Federal Reserve Notes are neither federal, or reserve or even a note. Economy 1 is a system based on Commodity Money. Economy 2 is based on Fiat Money.
Commodity money is gold and silver coin.
This is our constitutional money mandated in the Constitution. The bill of rights was ratified in 1791 and the Coinage Act of 1792 defined the dollar for all time as 371.25 grains of silver. The Constitution grants Congress the power to Coin money and regulate its value thereof but this does not mean Congress has the power to print money. Money means dollars and dollars mean 371.25 grains of silver per dollar. The amount of money in circulation is completely dependent upon the supply of gold and silver in the economy in the form of coin.