As the war progressed, both sides faced increasing financial difficulties. The war was expensive, costing both sides billions of dollars and the Union had to raise money through taxes, loans, and the printing of money. While both the Union and the Confederate States of America relied heavily on borrowing money to finance the war, the financial strength of the Union allowed it to borrow on more favorable terms and maintain a higher credit rating. The war also resulted in significant inflation, which eroded the purchasing power of money and made it increasingly difficult for both governments to procure supplies.