macroeconomics Case study

Q5: Case Study The people of France experienced a period of hyperinflation starting in 1795 during the French Revolution. During this time of financial hardship, from 1793 to 1795, the National Assembly, the governing body during the revolution, excessively printed assignats-France's currency at the time-to repay debts, according to the Foundation for Economic Education. By November 1795, 19.7 billion assignats were in circulation and the currency's value had decreased by 99% since it was first printed. Inflation got so bad that, in August 1796, it reached a high of 304%, according to the CATO Institute, To combat the hyperinflation, the National Assembly implemented price controls and stopped printing currency in December 1795. a. What were the reasons of France's hyperinflation? b. What were the measures taken in order to control the same. c. As a policy maker, suggest alternative policy measures to address the above issue