Articles of Confederation. Write 3 Paragraphs on how the Articles of Confederation interests you. Consider : The Articles of Confederation (1777) Congress (Federal government) limited by common fear of tyrannical central power→States retain sovereignty Only state governments had power to tax → federal government printed more money leading to inflation Economic problems : No power to levy tariffs → American merchants hurt by foreign competition Spain cut off Mississippi R. & France demanded repayment of loans No power to draft troops → weak army dependent on militias