Throughout history, transitioning from gold to paper money has often been a precursor to higher inflation. In the late 1700s, France’s currency, the mandat, flooded the economy and fell to 3 percent of its face value. It actually replaced the previously worthless French currency, the assignat, in a currency exchange where 30 old assignats equaled one new mandat. The assignats were supposed to be backed by Church properties that were later confiscated. Unfortunately, too many assignats were printed and thus created hyperinflation. While there were legitimate spending needs, back then printing money was not the answer.

Other famous inflationary incidents include Germany in the 1920s and, more recently, Zimbabwe. You have probably ...

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