Post
Topic
Board Economics
Re: Learning from Imperial Rome
by
thaaanos
on 26/06/2016, 19:33:35 UTC
Seems Rome was in a situation like UK right now,
A services sector thriving in Rome, while Industry (Farms) in Italy was taking a hit, as Empire expanded and acquired cheaper resources elsewhere. Debt mounted, Real estate crashed for the plebs and the situation reached a critical point. Early warning of that situation could be the Spartacus rebellion, (the weakest chain to feel the economic crisis first). No fiat at the time to easily expand the money supply and resolve liquidity crisis, any attempt to reduce the coin weight results to more hoarding and less liquidity, as vicious circle.  So bankers were taking the economy hostage "enslaving" Free romans.
I think julius eventually resolved the crisis by expansion of the army (employment of plebs) and money supply (Gaul & Germany gold?)