Why did the value of the money printed during the Revolutionary War plummet?
Answer (2)
During this time the paper money was not backed by anything such as gold or silver. In addition to this the colonies simply printed more money to pay for things which led to an enormous rise in the amount of currency in circulation which led to massive deflation. This massive deflation led the value of currency to plummet during the Revolutionary War.
The value of money printed during the Revolutionary War plummeted due to its lack of backing by tangible assets, excessive printing leading to inflation, and economic disruptions caused by the war. Additionally, distrust in the currency was exacerbated by states issuing their own forms of money. The resulting economic chaos rendered the Continental currency nearly worthless.
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