Inflation in the Roman Empire

Discussion in 'Ancient Coins' started by Steelers72, Dec 16, 2022.

  1. Steelers72

    Steelers72 Well-Known Member

    We all follow the market conditions to some degree, and it is interesting to see the parallels of today’s society with that of the Roman Empire.

    Our financial system is wholely dominated by that of the trust-based fiat system; unlike the bronze, silver, and gold coins the ancients used.

    Today, one can see in the news the Fed and Central Banks are actively attempting to tame the fires of inflation. With some months inflation rates lower than others & vice versa, the broad picture remains the same - Inflation is all too high.

    There’s a lot we can learn from the Ancient Romans, but the ultimate direction of the financial system depends on the actions of those in charge of the currency printing press.

    The Federal Bank of St. Louis had an interesting assignment for students where inflation in the Roman Empire was a topic of study.

    A few interesting snippets from the Fed’s assignment with some of my own commentary: 25569CE6-43B9-4532-A994-10B17E11963C.jpeg - 1 modius = 1/4 bushel
    - The average cost of a bushel of wheat in 1800 was around $1.82. Today, a bushel of wheat is $8.77. (~380% increase)
    - I wonder how much it would cost for a dozen eggs in Ancient Rome.


    The content of silver in Roman denarii during the reigns of several emperors:
    FB9228B6-7EB4-4F28-8DFC-1DF5E722ECF3.jpeg

    - On July 23, 1965, President Johnson approved the Coinage Act of 1965, which removed silver from circulating coins and authorized that clad coins be used for the half dollar, quarter, and dime.


    A few interesting Ancient quotes for thought or discussion:
    E0103400-E73D-48EA-B925-B86F0E449406.jpeg 95780371-7CBA-459F-9006-774B2FF7991D.jpeg

    Link to the St. Louis Fed assignment: https://www.stlouisfed.org/-/media/...on_and_the_fall_of_the_roman_empire.pdf?la=en

    A silver Roman Denarius of Nero (~90% silver content)
    9649DA97-1CC3-45C4-8602-7EAC00A865DA.jpeg
    Nero (AD 54-68). AR denarius (3.42 gm). RSC 119. Nero facing right Caesar Augustus. Reverse Jupiter seated left


    Post your comments and ancient coins - whatever their metal content may be.
     
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  3. JayAg47

    JayAg47 Well-Known Member

    I made this graph of Roman silver debasement throughout the centuries from my collection a couple years ago.
    Untitled.png
     
  4. Steelers72

    Steelers72 Well-Known Member

    That’s great!! Thanks for sharing
     
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  5. dltsrq

    dltsrq Grumpy Old Man

    I can't speak to the price of eggs in ancient Rome but at $7/dozen in modern Florida, there will be no deviled eggs this year on my Christmas table!

    (To be fair, I understand the skyrocketing price of eggs has more to do with avian flu than general inflation but my wallet can't tell the difference.)
     
    Last edited: Dec 17, 2022
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  6. Pickin and Grinin

    Pickin and Grinin Well-Known Member

    At least it's not a mandate. Co has put a law together that says all eggs sold in stores must be free range eggs. This has led to not only higher prices, but the shelves are nearly empty.

    I will refrain from the comments about the absurd amounts of money put into our economy the past few years, and they don't want to stop.
     
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  7. Nicholas Molinari

    Nicholas Molinari Well-Known Member

    A really fascinating thing to think about.
     
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  8. ToughCOINS

    ToughCOINS Dealer Member Moderator

    A highly recommended read to anyone waiting to understand the roots of inflation and its ultimate destination if it is not reigned in. This book chronicles the actions that all nations victimized by inflation throughout world history seem to have so consistently taken.
     
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  9. Steelers72

    Steelers72 Well-Known Member

    Thanks for the recommendation! Very important that we learn from the past
     
  10. Abramthegreat

    Abramthegreat Well-Known Member

    That's interesting, thanks for sharing!
     
  11. savitale

    savitale Well-Known Member

    Really interesting post, thanks!
     
  12. GinoLR

    GinoLR Well-Known Member

    In France in 1914, 10 Francs was a gold coin of 19 mm and 3.22 g. One century later in 2014, the same amount of 10 Francs of 1914 has become 0.02 Euro, a copper coin of 18.7 mm and 3.06 g.
     
  13. kevin McGonigal

    kevin McGonigal Well-Known Member

    And how many Frenchmen are concerned about that? My guess is not too many and I think this may be applied, mutatis mutandis, to the average Roman. From the literary evidence the inflation was so extended and not much noticeable to the average man in the streets that he was not paying much attention to the gradual changes. I think a good case can be made for causal factors of inflation other than debasement which was a response to other economic factors rather than the cause of them. How many Americans were horrified by the ending of a silver coinage in the 1960's or the inability to redeem silver certificates in actual silver? Like those Frenchmen, not very many. As long as the toll booth collectors and vending machines took those new cupro-nickel quarters few cared what they were made of.
     
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  14. David@PCC

    David@PCC allcoinage.com

    I wonder what happened in 1913 to do this :bored:
    Purchasing-Power-of-the-U.jpg
     
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  15. Broucheion

    Broucheion Well-Known Member

    Hi @David@PCC,

    See below.

    upload_2022-12-19_13-23-6.png

    - Broucheion
     
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  16. medoraman

    medoraman Supporter! Supporter

    Must be some free range, organic or simply outrageous market price. Convenience stores in MN have them for $2.99 a dozen. Its not nationwide those prices, at least not upper midwest.
     
  17. David@PCC

    David@PCC allcoinage.com

    Amusing they use 1907 as the stimulus to create fractional reserve banking.
     
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  18. dltsrq

    dltsrq Grumpy Old Man

    I happened to recall this thread while grocery shopping this evening. Regular large eggs. The same eggs would have been under $2 a year ago. They were $3.69 a few weeks ago. Fortunately, I don't buy eggs often.

    eggs.jpg
     
  19. Magnus Maximus

    Magnus Maximus Dulce et Decorum est....

    Exactly! Inflation was simply a symptom of the growing list of problems the Roman economy was accruing in the 3rd century. The Cyprian Plague in itself it said to have killed up to a fourth of the Roman army and left the most productive provinces of the Empire desolate. Increasingly mismanaged trade with India is said to have been a burden on the Imperial coffers as well.
    We see that when Aurelian and Diocletian tried to introduce higher-quality coins that it did not automatically solve the inflation issue of the 3rd century. Indeed, it was not until the reigns of Valentinian I and Valens that inflation is able to be tackled. In 367 the Roman state scraped the use of billon coinage in favor of bronze coins that floated in relation to the silver and gold coinage.
     
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