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Diocletian's main economic reforms were the introduction of new coins and price controls to try to solve the problem of hyperinflation. Neither of these worked. Hyperinflation and the economic crisis continued and the large landowners continued to deal with it has they had already being doing. They switched from commercial production to supply the cities to production for barter on the local market and turned migrants to the countryside from the impoverished towns and impoverished tenant peasants into servile workers.

Diocletian imposed burdensome taxes. The large landowners could not do much about this because Diocletian had created an autocracy by enormously enlarging the imperial bureaucracy which became very powerful. Moreover due to the low value of the coins, Diocletian resorted to taxation through confiscations of goods. He turned requisition into taxation and it was difficult to avoid this. Tax collectors were made to pay for what they failed to collect from their own pockets. Moreover, the empire was still affected by wars and there was too much instability for political opposition.

Constantine resolved the hyperinflation problem by abandoning the useless silver coins and amassing large quantities of gold which he used to issue a new gold currency which actually had value and was viable. This improved the economic situation of the rich, but not that of the poor who could not afford gold coins and still had to rely on a worthless copper token currency. Constantine also reformed taxation, making it less burdensome and reduced the top heavy bureaucracy. Constantine's economic policies were popular with the wealthy classes.

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Q: How did wealthy landowners react to economic reforms by diocletian and Constantine?
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What laws did Constantine change the laws of the empire?

Apart from laws which favoured the Christians, Constantine mostly retained the reforms introduced by his predecessor, Diocletian.


What did Constantine do to the world?

Constantine was a very significant Roman Emperor, ruling for 32 years. He consolidated his power, becoming the sole emperor, and brought an end to the turmoil that resulted from the breakdown of Emperor Diocletian's plan for an ongoing tetrarchy. During his reign the borders of the Roman Empire were maintained, and the economic reforms of Emperor Diocletian were consolidated. During his reign, Christianity moved from its status as a sometimes persecuted religion to the favoured religion of the Roman Empire.


When were the reforms of Diocletian made?

31 B.C. January 32


What did both Diocletian and Constantine do to improve the roman empire?

Both Diocletian and Constantine introduced reforms aimed at restoring stability in the Roman Empire and to resolve the problem of hyperinflation which was plaguing the empire. Through much of the 3rd century there had been military anarchy. The army had been overstretched by repeated invasions of the empire. The legions often rebelled and proclaimed their commander as emperor. Emperors were often murdered, sometimes even by their own troops which had proclaimed them emperors. There was also a string of usurper emperors who tried to take over an area of the empire. Diocletian created the tetrarchy (rule by four) to restore control over a fractious empire. He appointed fellow general Maximian as co-emperor. Diocletian took charge of the eastern part of the empire and Maximian took charge of the western part. He then appointed two junior emperors to take charge of troubled frontier areas both in the east and in the west. He divided the empire into four main administrative areas, each with one of the emperors in charge. He also doubled the number of provinces of the empire to reduce the power of provincial governors, doubled the size of the imperial bureaucracy and put the empire under tighter bureaucratic control. Constantine I became sole emperor after winning two civil wars. Therefore, he did away with the tetrarchy. However, he did not change Diocletian's other administrative reforms. He retained the number of provinces Diocletian had created, did not reduce the size of the bureaucracy and retained a tight bureaucratic control over the empire. Moreover, for his succession he partitioned the empire among his three sons and a nephew. Therefore, he envisaged restoring the tetrarchy. This did not work because his heirs fought each other. Both Diocletian and Constantine introduced reforms aimed at stopping hyperinflation, which was crippling the economy of the empire. Diocletian's reforms failed, whilst Constantine's worked.


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