![]() ![]() In 126 AD, Marcus Agrippa commissioned the Pantheon. In 122 AD, Emperor Hadrian started building Hadrian’s Wall. The Roman Empire reached peak territory in 117 AD under Emperor Trajan. Historians estimate Nero reduced the coin’s silver content by 20%. To cover his expenditures, Emperor Nero instituted the first round of Denarius debasement. In July of 64 AD, the Great Fire of Rome destroyed two-thirds of the city. Conflicts across the empire drained Rome’s coffers during this period, including the Roman–Parthian War, the Great Jewish Revolt, and several civil wars. Caesar Augustus, Julius Caesar, and other great Roman leaders of that era were known for their commitment to a stable monetary system. The Denarius: A Brief HistoryĪfter its inception during the 2nd Punic War, the silver Denarius maintained a consistent weight and purity for nearly 300 years. Of course, it also causes the prices of goods and services to rise. This allows the government to pay off the same nominal expenditures with a less valuable currency. Option 3: Debasing the currency means reducing the value of each currency unit. Only in Rome’s final years did emperors resort to debilitating taxation. Rulers that want to keep their heads tend to avoid burdening their populations with excessive taxation, especially when they can choose a much less obvious and more sinister option 3. Rome did not have the option of selling bonds like modern governments, so emperors rarely took on debt. As you might imagine, governments have a terrible track record of paying off debt once they acquire it. Option 1: Taking on debt pushes the problem of financial default into the future. When a civilization runs out of money, they face three options: Eventually, the Romans ran out of ways to finance their expenditures, despite having such a large taxable population. New borders needed protecting new enemies needed fighting new trade routes needed building. Rome’s military-industrial complex perpetually added costs without ever reducing them. Some situations, such as war, infrastructure projects, or natural disasters, pushed expenditures over revenue, but the Roman government always covered the difference with wealth produced from gold and silver mines or conquered enemies.Īs the empire reached its zenith in 117 AD, Roman emperors encountered an ever-growing list of expenses without revenue to match. Riches to Ragsĭuring Rome’s expansion, tax revenue covered imperial expenditures. ![]() Tracking the Denarius over its 500-year lifespan helps us understand how and why Rome collapsed. However, the silver Denarius served as Rome’s economic backbone. Roman citizens also used other mediums of exchange, such copper and bronze coins and even land. By that time, the Denarius had been debased out of existence. Both coins lasted until the reign of Constantine (306 – 337 AD). The gold Aureus began circulating in the 1st century BC and gained popularity during the reign of Julius Caesar (46 – 44 BC). The silver Denarius, first minted during the 2nd Punic War (218 – 201 BC), soon became Rome’s primary currency unit. A centralized currency also simplified tax collection. The government minted and circulated the gold Aureus and silver Denarius to provide citizens with a reliable medium of exchange. The Romans built their monetary system on precious metals. Like many powerful civilizations before and since, Rome’s destruction came when the government resorted to currency debasement. So, how did excessive government spending, currency devaluation, inflation, and a breakdown of trade end up tearing the empire apart? The answer can be found in Rome’s treacherous transition from hard money to easy money. For centuries, Rome led the world in all these categories. Because of this, economic strength often correlates with cultural stability, technological innovation, and even artistic achievement. Money touches every aspect of human life. While all these factors contributed, Rome’s decline really comes down to one thing: money. How does an empire that controls global trade and 20% of the earth’s population lose its sovereignty? Historians have debated this for centuries, pointing to religious turmoil, destruction of traditional Roman values, Germanic invasions, and political corruption. Roman roads connected trade routes across Europe, Africa, and Asia Roman armies conquered 5 million square kilometers of territory Roman art and literature layed the groundwork for modern Western culture.Īnd yet, Rome fell apart. If ever there was an unbreakable civilization, the Romans held the title. Three hundred years later, the Denarius had been reduced to a worthless scrap of copper alongside a crumbled empire. When Matthew wrote his gospel in 85 AD, one pure silver Denarius covered the daily wages of a skilled Roman craftsman. ![]()
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