section_path: Economic policies
section_name: Economic policies
paragraph_text: Economic policies
  
  The Revolution abolished many economic constraints imposed by the Ancien Régime, including church tithes and feudal dues although tenants often paid higher rents and taxes. All church lands were nationalised, along with those owned by Royalist exiles, which were used to back paper currency known as assignats, and the feudal guild system eliminated. It also abolished the highly inefficient system of tax farming, whereby private individuals would collect taxes for a hefty fee. The government seized the foundations that had been set up (starting in the 13th century) to provide an annual stream of revenue for hospitals, poor relief, and education. The state sold the lands but typically local authorities did not replace the funding and so most of the nation's charitable and school systems were massively disrupted.
  
  Between 1790 and 1796, industrial and agricultural output dropped, foreign trade plunged, and prices soared, forcing the government to finance expenditure by issuing ever increasing quantities assignats. When this resulted in escalating inflation, the response was to impose price controls and persecute private speculators and traders, creating a black market. Between 1789 and 1793, the annual deficit increased from 10% to 64% of gross national product, while annual inflation reached 3,500% after a poor harvest in 1794 and the removal of price controls. The assignats were withdrawn in 1796 but inflation continued until the introduction of the gold-based Franc germinal in 1803.