What is the assignment?

When the French monarchy did not have funds during the French Revolution and French debt grew, the National Assembly introduced assignment in an effort to alleviate some of the country's financial suffering. Assignment was a paper cash instrument that was first published as a government bond. As a link, however, assignment did not achieve the results that hoped. Soon after, assignment was re -released as a currency. The currency has been printed in large quantities and is largely credited with extreme inflation that France suffered at the end of the revolution.

The original assignment was sold as bonds providing primarily church property. The French government began entertaining church buildings and land at the beginning of the French Revolutionary Wars as a way to generate funds. The original assignment was issued in values ​​that corresponded to the evaluated value of seized churches.

WHO citizen bought one of these first assignments basically bought a government bond. In a sense, he lent money to the government, and the government promised to repay this amount for a fixed period of time with interest. Interest promised at the first assignment was around 3%.

Funds generated by these bonds with similar assignments have only a few months. It wasn't long before the government invented a new plan: to release assignment as banknotes that would act as a legal tender. The National Assembly canceled the interest payment and ordered the printing of almost double the number of allocation notes that were first printed with understanding that they were to be released as a currency for any use.

The pattern was repeated. Introduction Assignment to the market Mamanapanese added financial stability, but this stability was short -term. The government twice as much as the press and release of notes to assign twice more was the infusion onlyby a temporary elevator.

Assignment , perhaps predictably, as a result suffered extreme depreciation and the market became hyper inflated. Inflation occurs when the price of the goods increases so that the value of money - ie the amount of goods that can buy money - decreases dramatically. When the assignment was issued, the money was fertile and the costs increased. However, when the value collapses, the prices are largely high.

Many of the pictures of the French Revolution popular today show unrest, food shortages and the main economic calamity. Although not all of them were caused by allocation crisis, allocation generally a negative effect on the French economy was certainly a factor in the rapid decline in the national climate.

The last assignment was printed in 1795. Next year, the government created a currency known as Mandat , which was to slowly gradually eliminate assignment . Both currencies have become outdated when NapoleonHe got to power and in 1801 introduced Frank. In 1999, Frank was the national currency of France until the introduction of the Euro Union.