Inflation is a sustained increase in the general price level of goods and services in an economy. It is measured as the annual percentage change in a price index, which is a weighted average of the prices of a basket of goods and services.
Inflation during the Civil War
The American Civil War caused significant economic inflation in the United States, particularly in the Confederate States of America. Union inflation is estimated to have reached around 80% while Confederate inflation is estimated at 9,000%. The Confederate money's value dropped, and Confederate states attempted to stabilize its currency by requiring citizens to pay taxes and debts in cotton, which ultimately proved ineffective.