What was a major economic problem facing the newly formed United States post-Revolution regarding currency?

The major economic problem facing the newly formed United States post-Revolution regarding currency was inflation of paper money. After the American Revolution, the new nation struggled to finance its war efforts and maintain its economy. The Continental Congress issued paper money to fund military expenses, leading to an abundance of currency in circulation. As a result, the value of this paper money plummeted, causing severe inflation. This devaluation made it difficult for people to trust the currency, leading to economic instability and hardship.

The issue of inflation was compounded by a lack of a strong central government capable of regulating currency, which was a significant challenge in maintaining economic order. Individuals and states often issued their own currencies, further contributing to the confusion and inflationary pressures.

High taxes, deficit spending, and trade restrictions did pose problems for the young nation, but none illustrated the immediate crisis of trust and value in currency like the rampant inflation of paper money did. This economic instability led to various issues, including a loss of confidence in governmental authority and calls for reform, which ultimately set the stage for the Constitutional Convention and a more stable economic framework.