ELI5: Explain Like I'm 5

Assignat

Have you ever played a game where you have some coins and you can use them to buy things in the game? Well, assignat is kind of like that, but instead of coins, it's a piece of paper that the government gives you.

The government gives out assignats as a way to pay for things, like building roads or buying goods for the army. But instead of using real money, they just write a number on a piece of paper and say it's worth that much.

So, let's say the government gives you an assignat that says it's worth 10 coins. You can use that piece of paper to buy something that costs 10 coins in the game.

The problem with assignats is that sometimes the government gives out too many of them. Just like if you had too many coins in the game, the value of the assignats goes down.

If you had 10 assignats that were worth 10 coins each, but then the government printed more and gave them to everyone else too, suddenly your 10 assignats aren't worth as much anymore.

People might start to worry that the assignats might not be worth anything soon, and that's bad for the economy. So, it's important for the government to be careful how many assignats they give out and make sure they only give out as much as they need to.
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