After the French Revolution in 1789, France experienced a hyperinflation similar to Zimbabwe’s (although much smaller in magnitude). At one point, the French currency was worth so little that people used it for fuel rather than spending it.
a. What function(s) of money did the French currency fail to fulfill during the hyperinflation?
b. Eventually, France issued a new currency, backed by gold. Why did the new currency need to be backed by gold?