Name of the Irredeemable Currency

Description

Date range

References

Assignats and Mandats

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. These church lands became known as biens nationaux.

Originally meant as bonds, they evolved into a currency used as legal tender. 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. 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.

In August, 1796, a new French currency was made legal tender, and was named the "mandat." They were touted as being "good as gold." They were converted at a ratio of 30 assignats to one mandat.

The inflation was finally solved by Napoleon in 1803 by introducing the franc (Gold Napoleon) as the new currency. By this time, the assignats were basically worthless.

1789-1796-1803

Fiat Money: History Repeats Itself by Doug Casey; WikiPedia; French Revolution;

Continental currency

Issued by several American Colonies, as well as by the Continental Congress, after the Revolutionary War began. prompted the delegates to the Constitutional Convention to include the gold and silver clause into the United States Constitution, which empowered the Federal Government to coin money, and prohibited fiat currency.

1775 June - 1781

http://en.wikipedia.org/wiki/Continental_currency

mandats

Reichsmark

1919 - Nov 1923

US Dollar since 1971

A series of events, most notably Nixon taking the dollar off gold in August 1971, is a plausible choice for the beginning of this irredemable fiat experiment.

1971 -