Debt Crisis Before the French Revolution

The French monarchy on the eve of the French Revolution faced a significant debt crisis due to both public and private debt. The nobility and the common people alike were burdened with substantial amounts of debt. Property ownership in the old regime was tied to credit obligations, and the French Revolution disrupted this system, causing a disruption in credit markets as well. The credit contracts during the old regime were based on property as collateral, but the revolution led to changes in the definition of property and credit. The French Revolution replaced the old regime's complex system with individual private property. This change had a significant impact on credit contracts and how credit operated.