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Currency and the Collapse of the Roman Empire
How debasement can drive the end of a civilization
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How debasement can drive the end of a civilization
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Around 200 AD, inability to pay for the state expenses lead treasuries to decreased the purity of silver coins
That way they could mint more coins with the same amount of silver
"They printed more"
Around 200 AD, inability to pay for the state expenses lead treasuries to decreased the purity of silver coinsThat way they could mint more coins with the same amount of silver"They printed more"
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Debasement took time to materialize
More money was needed to pay for good & services
Debasement shifted wealth away from people
It started slowly around 50 AD then accelerated abruptly around 200 AD
Debasement took time to materializeMore money was needed to pay for good & servicesDebasement shifted wealth away from peopleIt started slowly around 50 AD then accelerated abruptly around 200 AD
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Wealth was concentrated in the elite
Soldiers demanded higher wages to sustain their living standards
“Nobody should have any money but I, so that I may bestow it upon the soldiers.” – Caracalla, who raised soldiers pay by 50% near 210 AD.
Wealth was concentrated in the eliteSoldiers demanded higher wages to sustain their living standards“Nobody should have any money but I, so that I may bestow it upon the soldiers.” – Caracalla, who raised soldiers pay by 50% near 210 AD.
4/5
Because of the worthless money Romans faced hyperinflation
By 265 AD, when there was only 0.5% silver left in a denarius, prices skyrocketed 1,000% across the Roman Empire.
Prosperity was long gone
Because of the worthless money Romans faced hyperinflationBy 265 AD, when there was only 0.5% silver left in a denarius, prices skyrocketed 1,000% across the Roman Empire.Prosperity was long gone
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The impact: TRIFECTA
Money become worthless
Taxes soared
Hyperinflation became the norm
The R.E. economy was paralyzed: trade became local using barter instead of meaningful means of exchanges
In 476 the w. Roman Empire would finally collapse
The impact: TRIFECTA
Money become worthlessTaxes soaredHyperinflation became the normThe R.E. economy was paralyzed: trade became local using barter instead of meaningful means of exchanges
In 476 the w. Roman Empire would finally collapse
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HT @VisualCap
