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Inflation was caused by the crisis of the 3rd century. During this period the empire was under the strain of numerous attacks across the vast frontiers. Many local and regional military commanders proclaimed themselves as usurping emperors of their regions. They issued their own coins. This produced an excess of coins. Therefore, the problems started with an oversupply of money.

The problem persisted because of the Romans' poor understanding of economics. They tired to debase their coins (decreasing the amount precious metal in them). This was like trying to devalue the currency. It did not work. They also tried to introduce price controls. This did not work either. The Romans did not understand that it was a problem of oversupply.

Another problem was that raids by the Franks and Alemanni destroyed large parts of Gaul. This led to an agricultural crisis. As food production decreased, prices rose.

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12y ago

as government weakened, Law and Order broke down. roads and bridges were destroyed, and trade touts became unsafe.

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6y ago

The currency was degraded and devalued and so was no longer a fair means of exchange.

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Q: What caused the Roman Economy to weaken?
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