With the colonists’ low life expectancy due to isolation and being ravished by deadly diseases that were brought from Europe, New England’s population growth quickly fell behind the growth of other cities in the region. Due to an imbalance in trade with the inhabitants of the West Indies, the prospering economy they once establishes with their surplus of “cod, grain, livestock, and barrel staves,” quickly declined (Murrin, 87 p.). In order to correct this economic crisis, the colony of Massachusetts began to issue a paper currency called fiat money. This unique type of paper money was backed by the government’s “promise to accept it in payment of taxes” (Murrin 87 p.). Although successful, the paper money quickly depreciated in value after about 20 years. Without any other options, the colonists were forced to revert back to backing their currency back to the silver currency that they used to use in
With the colonists’ low life expectancy due to isolation and being ravished by deadly diseases that were brought from Europe, New England’s population growth quickly fell behind the growth of other cities in the region. Due to an imbalance in trade with the inhabitants of the West Indies, the prospering economy they once establishes with their surplus of “cod, grain, livestock, and barrel staves,” quickly declined (Murrin, 87 p.). In order to correct this economic crisis, the colony of Massachusetts began to issue a paper currency called fiat money. This unique type of paper money was backed by the government’s “promise to accept it in payment of taxes” (Murrin 87 p.). Although successful, the paper money quickly depreciated in value after about 20 years. Without any other options, the colonists were forced to revert back to backing their currency back to the silver currency that they used to use in