Abstract

Hyperinflation during the French Revolution, like the German hyperinflation of the 1920's, has left a lasting imprint on collective memory, most likely because it was associated with momentous political and social developments. Indeed, the era of the French Revolution was disastrous from the economic point of view. Not only did the revolutionary period have the dubious honor of being the first hyperinflation in modem times, but it also witnessed a substantial decrease in output and a severe disruption in the operation of most markets.

Since this period corresponded to the existence of the assignats, it was easy to accuse the assignats of being at the root of the economic problems. French historians have not only blamed the assignats for the inflation, but also for many of the disasters of the period. They have been accused of causing a substantial decrease in output, of disrupting markets, of causing famine, and of rendering the "Reign of Terror" inevitable.

Was the role of the assignats during the French Revolution an evil, as claimed by most historians, or a rescuer, as depicted by Jaures? The purpose of this paper is to analyze the effect of the assignats during the French Revolution.

Keywords: French Revolution, hyperinflation, assignats