Question

mention economic condition of roman empire ?(class xi history)

Answer 1

During the Roman Republic, the Roman economy was largely agrarian, centered on the trading of commodities such as grain and wine.[2] Financial markets were established through such trade, and financial institutions which extended credit for personal use and public infrastructure, were established primarily through inter-family wealth.[3] In times of agricultural and cash shortfall, Roman officials and moneyers tended to respond by coining money; this happened during the prolonged crisis of the First Punic War, and created economic distortion and difficulties. Beginning in the early Roman Empire, the economy became monetized to a near-universal extent, in the sense of using money to express prices and debts, and a basic banking system was formed.[4]Emperors issued coinage stamped with their portraits, to disseminate propaganda, to create public goodwill, and to symbolise their wealth and power.[5] The Roman Imperial economy was often unstable, inflated in part by Emperors who issued money to fund high profile imperial projects such as public building works, or costly wars that offered opportunities for propaganda, but little or no material gain.[4]

There was no central bank to monitor the money supply and control economic conditions, and nearly no regulation of the banking system.[7] The setup of the banking system under the Empire allowed the exchange of extremely large sums without the physical transfer of coins, which led to fiat money. With no central bank, a professional deposit banker (argentarius, coactor argentarius, or later nummularius) received and held deposits for a fixed or indefinite term, and lent money to third parties.[8]Generally, available capital exceeded the amount needed by borrowers, so loans were made and credit was extended on risky terms.[9] The senatorial elite were involved heavily in private lending, both as creditors and borrowers, making loans from their personal fortunes on the basis of social connections.[4] Banks of classical antiquity typically kept less in reserves than the full total of customers' deposits, as they had no incentive to ensure that customers' deposits would be insured in the event of a bank run.[4]It was common consensus among Romans at the time, especially due to Seneca's ideologies, that anyone involved in commerce should have access to credit.[10] This tendency toward fiat money caused the money supply to fluctuate consistently.[10]

Emperors of the Antonine and Severan dynasties overall debased the currency, particularly the denarius, under the pressures of meeting military payrolls.[11] Sudden inflation during the reign of Commodusdamaged the credit market.[9] In the mid-200s, the supply of specie[disambiguation needed]contracted sharply.[12] Conditions during the Crisis of the Third Century—such as reductions in long-distance trade, disruption of mining operations, and the physical transfer of gold coinage outside the empire by invading enemies—greatly diminished the money supply and the banking sector by the year 300.[13] Although Roman coinage had long been fiat money or fiduciary currency, general economic anxieties came to a head under Aurelian, and bankers lost confidence in coins legitimately issued by the central government. Despite Diocletian's introduction of the gold solidus and monetary reforms, the credit market of the Empire never recovered its former robustness.[9]

Answer 2

For all of the glory and grandeur of Ancient Rome, the Roman economy never developed into anything terribly complex compared to modern economies. Ancient Rome was an agrarian and slave based economy whose main concern was feeding the vast number of citizens and legionaries who populated the Mediterranean region. Agriculture and trade dominated Roman economic fortunes, only supplemented by small scale industrial production.

The staple crops of Roman farmers in Italy were various grains, olives, and grapes. Olive oil and wine, outside of direct food stuffs, were among the most important products in the ancient civilized world and led Italy's exports. Romans did use a limited form of 2 tier crop rotation, but crop production was largely low output and required a vast number of slaves to operate at any volume.

Farmers could donate surplus crops to the government in lieu of a monetary tax. This system allowed both Republican and Imperial rulers to gain popularity with the masses through free grain distribution and also help to feed the legions at no direct monetary cost. Unfortunately it also left farmers with little incentive to increase productivity or output, since more crop translated to more taxes (and more free grain distributions). Citizens grew dependent on these grain doles and the large volume of trade that ensued. The need to secure grain providing provinces was one important, of many factors that would lead to the expansion and conquests of the Roman State.

Among these conquests were the provinces of Egypt, Sicily and Tunisia in North Africa. These areas were of vital importance in the processing and shipment of grain to Rome. Grain was shipped directly to Ostia, the official port of Rome, and penalties for disruption of the most direct route included deportation or execution. Once delivered to Ostia the grain was weighed, checked for quality, and then sent up the Tiber River on barges to Rome, where it would be repacked for distribution throughout the Empire.

While the production and transportation of foods dominated the trading industry, there was also a vast exchange of other goods from all parts of Europe, Asia, and Africa. The prosperity of the Empire and many of it citizens generated a need for luxurious and exotic imports. Silks from China and the Far East, cotton and spices from India, Ivory and wild animals from Africa, vast amounts of mined metals from Spain and Britain, fossilized amber gems from Germany and slaves from all over the world discovered that all roads did indeed "lead to Rome