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United States monetary history chapter for colonial script and the currency act [Music] when we last the colonies they had just finished fighting the French and Indian War theyd managed to do it without the inflationary tax commonly associated with fiat money we dope into the negative effects of fiat paper currency when misused during this time each colony and geographic area functions separately meaning that each area was able to use the same idea and have a different result for simplicitys sake we will divide the colonies into two fiscal categories those that abuse the paper money known as colonial script and those that did not abuse or misuse it areas that abused it would see large booms and busts cycle along with a myriad of other negative effects previously described in video chapter 3 the colonies that were wiser or at least much more moderate in their use of colonial script those at Fiat paper currency backed by nothing were able to achieve stability and consistent economic gr
