Macroeconomic Features of the French Revolution Author(s): Thomas J. Sargent and François R. Velde Source: Journal of Political Economy, Vol. 103, No. 3 (Jun., 1995), pp. 474-518 Published by: The University of Chicago Press Stable URL: http://www.jstor.org/stable/2138696 . Accessed: 12/04/2013 15:49 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp . JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact
[email protected]. The University of Chicago Press is collaborating with JSTOR to digitize, preserve and extend access to Journal of Political Economy. http://www.jstor.org This content downloaded from 129.199.207.139 on Fri, 12 Apr 2013 15:49:56 PM All use subject to JSTOR Terms and Conditions Macroeconomic Features of the French Revolution Thomas J. Sargent University of Chicago and Hoover Institution, Stanford University Frangois R. Velde Johns Hopkins University This paper describes aspects of the French Revolution from the perspective of theories about money and government budget con- straints. We describe how unpleasant fiscal arithmetic gripped the Old Regime, how the Estates General responded to reorganize France'sfiscal affairs, and how fiscal exigencies impelled the Revo- lution into a procession of monetary experiments ending in hyper- inflation.