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The central government under the Articles was too weak since the majority of the power rested with the states.
For any major laws to pass they had to be approved by 9 or the 13 states which proved difficult to do so that even the normal business of running a government was difficult.
Paper money is what brought down the Confederation. Congress printed money to the point of completely destroying the currency. From this act came the phrase "not worth a continental".
The truth is that because fiat currencies were allowed to exist, eventually the currency was ruined. There were many Federalists who were dissatisfied with the Articles of Confederation, as they did not result in a strong centralized government. Alexander Hamilton was chief among them.
The collapsing currency created a chance for the Federalists to create a style of government that they supported much more. The debates between the Anti-federalists and the Federalists were still continuing. Thomas Jefferson even went as far as to remove himself from the signing of the Constitution.
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