10 Francs – France

In 1947, France was grappling with a severe and persistent monetary crisis rooted in the economic devastation of World War II. The country's reconstruction, funded by massive government spending and a rapid expansion of the money supply, had led to rampant inflation and a collapsing currency. The franc had been devalued several times since liberation, but prices continued to soar, wages failed to keep pace, and a thriving black market undermined the official economy. This situation eroded public confidence, fueled social unrest, and created a critical imbalance in foreign trade, as imports were desperately needed but became prohibitively expensive.

The political response was fragmented and ineffective for much of the year. A succession of short-lived coalition governments, spanning from the Socialist Paul Ramadier to the MRP Robert Schuman, struggled to implement the stringent austerity measures required for stabilization. Attempts to control prices and freeze wages proved unenforceable and sparked major strike waves in the spring and autumn. The fundamental issue was a lack of political will to curb spending and credit, as leaders feared the social backlash from ending subsidies and tightening fiscal policy. Consequently, the currency continued its downward spiral, with the franc's unofficial value plummeting on parallel markets.

The turning point came in late 1947 and early 1948, setting the stage for the eventual reform. Under the pressure of the looming Marshall Plan, whose aid was contingent on financial discipline, and following the departure of Communist ministers from the government, a more decisive course was charted. The Schuman government, with the crucial backing of the United States, began preparing the radical "Pinay-Rueff" reforms that would be implemented in 1948. These included a new devaluation, the creation of a dual exchange rate, and strict credit controls, which finally began to stabilize the franc and integrate France into the nascent European recovery system. Thus, 1947 was the chaotic climax of the postwar monetary crisis, a year of failure that made subsequent tough medicine politically unavoidable.