What caused inflation in the Roman Empire quizlet?
Why did inflation occur in Rome? Because of a bad economy, people paid less in taxes. The government had the same expenses, so, to pay the soldiers, the Roman government began to put less gold in its coins. When people learned that the coins had less gold, the coins lost value.
What did Rome do to their coins that resulted in high inflation?
Similar to the situation in Ptolemaic Egypt, the Romans began adding impurities to their silver coins so that more could be added to circulation. The process had two results: there were too many coins in circulation and the new coins that were being added were comprised more of other metals than silver.
Why did Rome’s economy fail?
Even as Rome was under attack from outside forces, it was also crumbling from within thanks to a severe financial crisis. Constant wars and overspending had significantly lightened imperial coffers, and oppressive taxation and inflation had widened the gap between rich and poor.
Where did rich Romans keep their money?
Because they were always occupied by devout workers and priests and regularly patrolled by soldiers, wealthy Romans felt they were safe places to deposit money. Money was commonly stored in various different temples for both practical and security reasons as a temple could catch fire or be ransacked.
Why was salt so valuable in ancient times?
Prior to industrialization, it was extremely expensive and labor-intensive to harvest the mass quantities of salt necessary for food preservation and seasoning. This made salt an extremely valuable commodity. During the Middle Ages, salt was transported along roads built especially for that purpose.
Why is salt so inexpensive?
With a predictable market and no way to improve the product what happens is that profit margins are kept low and the market gets dominated by large suppliers. Food salt is comparatively a small market and the price is so cheap that it would scarcely generate more than a few dollars per household per year.
Why did Roman soldiers get paid in salt?
In Roman times, and throughout the Middle Ages, salt was a valuable commodity, also referred to as “white gold.” This high demand for salt was due to its important use in preserving food, especially meat and fish. Being so valuable, soldiers in the Roman army were sometimes paid with salt instead of money.