which action caused continental currency to become worthless
Several factors contributed to the worthlessness of Continental currency during the American Revolutionary War. However, one key action that resulted in the devaluation of Continental currency was the overprinting of money.
During the war, the Continental Congress needed to finance the war effort, so they printed large quantities of paper money, known as Continental currency. Initially, the currency held some value, as it was backed by the promise of future taxes and the faith of the American people in the revolutionary cause.
However, as the war prolonged and the Congress continued to print more and more money, inflation skyrocketed. The excessive printing of Continental currency led to a significant increase in the money supply, without a corresponding increase in goods and services in the economy. As a result, the value of the currency sharply declined.
Furthermore, the British also played a role in undermining the value of Continental currency. They counterfeited large amounts of Continental currency, flooding the markets with fake money, further devaluing the currency.
Ultimately, the combination of excessive printing, inflation, and British counterfeiting caused the Continental currency to become worthless, leading to hyperinflation and economic turmoil during the Revolutionary War.