Assignat
|
|
Assignats were banknotes issued by the National Constituent Assembly in France during the French Revolution. The assignats were issued after the confiscation of church properties in 1790 because the government was bankrupt. The government thought that the financial problems could be solved by printing certificates representing the value of church properties.
Originally meant as bonds, they evolved into a currency used as legal tender. Although it wasn't, you can describe it as massal speculation with bonds.
As there was no control over the amount to be printed, the value of the assignats exceeded that of the confiscated properties. This caused massive hyperinflation.
In the beginning of 1792, they had lost most of their nominal value.
This hyperinflation was stirred up by repeating food shortages. Instead of solving the financial problems, the assignats became a catalyst for (food) riots.
Instability continued after the abolition of the monarchy, exacerbated by the wars France faced. This situation impeded the implementation of good financial policies that would reduce debts. Bills such as the Maximum Price Act of 1793 aimed to regulate inflation.
When the Directoire came into power in 1795 the Maximum Price Act was lifted. Hyperinflation reemerged and in the next four years Paris was the stage of yet more riots.
The inflation was finally solved by Napoleon in 1803 by introducing the franc as the new currency.de:Assignat fr:Assignat ja:アッシニア sv:Assignat