Why was the Confederation Congress unable to control inflation?

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2026-05-22 19:05

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The Confederation Congress struggled to control inflation primarily due to its lack of taxing power and reliance on state contributions for funding, which were often insufficient. Additionally, the issuance of paper currency without backing by gold or silver led to a devaluation of money, exacerbating inflation. The absence of a strong central authority to regulate commerce and the economy further hindered effective monetary policy. As a result, the Confederation Congress faced significant challenges in stabilizing the economy during and after the Revolutionary War.

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