Inflation is an old scourge.
Diocletian recognized the heavy toll of centuries of inflation through the abuse of the fiat currency. In an effort to build up the Empire’s coffers, he decreed payment of taxes be in goods. Furthermore Cheap Jerseys From China , in an ill-conceived effort to address the effects rather than the cause of Rome’s chronic economic malaise, all manner of price, wage, production and anti-hoarding regulations were imposed.
The most dramatic of these regulations was his A.D. 301 Edict, which prescribed the death penalty for violators. Though much bloodshed resulted, the Roman economic implosion through inflation continued to run rampant. In that A.D. 301 Edict, Diocletian fixed the price of gold at 50,000 denarii per pound. By 337, the year of Constantine’s death, a pound of gold brought 20,000,000 denarii!
What is generally considered the final century of the Roman Empire (at least the Western Empire) was characterized by economic decay and social deterioration. Roman’s abandoned the market economy in droves. Being forced by law to treat a coin as having a value which it simply did not made rational economic activity almost impossible – without breaking the law. Some fled the country. Others entered voluntary serfdom – escaping the cash economy. The feudal system of Europe is frequently explained as a consequence of the collapse of a sophisticated economy after the fall of Roman civilization. In fact, though, feudalism emerged in the very bosom of Rome. It was the rational response to a monetary economy crippled by a coercively mandated currency verging on worthless.
One always wants to avoid overly simple explanations for major historical events Cheap Jerseys , but there can be no question that the fall of Rome has to be in some serious measure attributed to the centuries of economic malaise incurred by the debased fiat currency.
Naturally, rising prices run rampant as producers and merchants attempt to adjust reality to the devalued money which they’re legally coerced to treat as having a make-believe value. If the rulers respond with price controls, as so often happens, the next step for producers and merchants is to compromise the quality or quantity of their goods, to save the value they’re losing when forced to use the money as though it had a value it that the market does not afford it.
If wage, price, quota Wholesale NBA Jerseys , etc., regulations are coercively imposed in an effort to suppress these natural market adjustments, as happened with Rome, the very collapse of the official monetary economy can follow.