what resulted from the loss in value of the continental dollar
The loss in value of the Continental dollar had significant consequences. It led to hyperinflation, meaning the currency rapidly lost its purchasing power. As people lost confidence in the Continental dollar, they started to hoard goods and refuse to accept the currency as a means of payment. This situation severely disrupted trade and commerce.
Additionally, the loss in value of the Continental dollar undermined the financing of the American Revolutionary War. Congress was unable to raise sufficient funds through taxation or borrowing, as the currency was rapidly depreciating. Therefore, they resorted to printing more money, which further exacerbated the inflationary spiral.
The depreciation of the Continental dollar also caused economic hardship for individuals and businesses. Prices skyrocketed, making basic goods unaffordable for many people. Trade with foreign countries became difficult, as they were unwilling to accept the Continental dollar as a valid form of payment.
Overall, the loss in value of the Continental dollar contributed to economic instability and hindered the American war effort during the Revolutionary War. It highlighted the importance of having a stable and trustworthy currency for a functioning economy. Ultimately, this experience played a role in shaping the establishment of a more stable and reliable national currency in the form of the United States dollar.