Printing excessive banknotes causes inflationAs with any money, the continued production of banknotes without backing will create severe inflation. ...........the confederate states had their own dollar to finance the civil war ( was called the greyback)............as they printed more and more greybacks and started to lose the war the currency became worthless.......although if you have a $1000 dollar mint greyback today you might get as much as $35,000.00 for it from a collector