Anonymous
Anonymous asked in Arts & HumanitiesHistory · 1 month ago

when and why did the Roman Empire have its monetary crisis that caused severe inflation? how similar to the USA's issue of today?

Update:

and how did they resolve it?

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  • John
    Lv 5
    1 month ago
    Favourite answer

    No comparison, the Fall of the Roman Empire in the West (the East carried on for another 1,000 years) in 5th Century is complex.  

    The Quantitative easing that US federal Reserve is pumping into the economy, is going into the back pockets of the super rich, hence Bezos suddenly becoming so much richer.  Quantitative easing is not printing money like mad, as the meme showing the printing machine would have you believe?  It is buying Corporate Bonds, hence the owners of the Big Listed corporations are suddenly so much richer.  You are not seeing this money in circulation so there is little inflation, I'll lay odds that you are not suddenly receiving an increase in your pay packet.    

    The Romans basically debased their currency from 4th Century onwards, adding copper to silver and gold thus increasing the amount of money in circulation.  The Romans had no idea they were creating the problem and couldn't understand, why inflation was happening.  

    On top of this the Roman super rich didn't pay any taxes, and by 5th Century, it was nearly impossible to move from your status in society.  Also the Laws were becoming exclusively for the very rich, the poor ceased to have access to the Law, hence the Government were held in disdain, and had little support.  

    The dwindling middle classes, (when Britain ceased to be taxed in 406 AD less tax went to Rome) but more and more money was needed to pay the legions, hence debasing the currency.  

    Also there were less and less slaves, as slaves were given manumission, so people found the ease of living was less so.  They couldn't buy a slave to do menial tasks and so had to do more work themselves, or employ someone, but couldn't afford to because the taxes were rising to pay the Legions, this is less efficient, and efficiency pays wages, so the wealth of the Romans plummeted.   

    The Romans never resolved it, the Empire in the West collapsed, around 450 AD.  

    The current Quantitative easing by the Fed is not actually printing money that goes into circulation, or pays Government employees, so little inflation. America is not going to collapse anytime soon.   

  • 1 month ago

    They debased coins causing people to loose faith in government 

  • 1 month ago

    BCE 42. They resolved it by issuing gold-backed drachma, not fiat denarii.

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