Which explains the monetary policy weakness in the Articles of Confederation?

Question

1.The states were required to use the same currency.
2.The states had the authority to create and print their own currency
3.The states were required to use the national currency.
4.The states were given options of what currency they could use.

Answer 1

2. The states had the authority to create and print their own currency.

Under the Articles of Confederation, each state had the power to issue its own currency. This decentralized approach to currency creation led to significant weaknesses in the monetary policy of the time. Without a single national currency, there was a lack of uniformity and coordination in economic policies between states. This made it difficult to manage inflation, control the supply of money, and ensure stability in the economy.