Evidence for a Market Economy in the Roman Empire

There is some debate over what the economy of the early Roman Empire looked like. Some believe the Romans relied on a system of reciprocity where they tried to give the same value of goods as the value of goods they received. Others argue the Romans had a market economy (less sophisticated than today’s market economy). One indicator of a market economy is if the prices are allowed to fluctuate. In a market, prices react to things like availability and demand. Romans commonly used coins for payment which is another possible indicator of a market economy. Tenants in Rome had to pay rent and travelers had to pay for food, drink, and feed for their animals. 

The author of this article argues for the presence of a market economy in Rome during the early Roman Empire. Some evidence of a market is the use of capital markets. Both urban and agricultural loan companies existed as well as maritime loans that were very common during this time. There are also many examples of farmers selling their produce in a market. The prices were allowed to fluctuate instead of being fixed by the government. In A.D. 33 a liquidity crisis hit the area and land prices collapsed which also indicates prices fluctuated with the market. Cities located near water were more engaged in economic activity because trade was much easier for them to participate in but evidence of a market economy still exists for inland populations. While it is true that people who are engaged in economic activity are more likely to keep records, it also shows that participating in the market was a dominant activity among Rome’s literate population. These are just a few examples of how the early Roman Empire was engaged in a market economy. 

One of the most interesting sites we visited in Rome was the Roman Forum. For many hundreds of years the Roman Forum was heart and soul of the empire. Around a million people lived in Rome during the height of the empire and the main square of the Forum was a popular gathering place. Many economic exchanges likely took place in the Forum. This place was also the political center of Rome. The senate met in the Curia and likely made decisions that influenced the economy. Visiting the Forum was fascinating because it is like stepping back in time. While pretty much only rubble remains, there is enough remaining that I could picture what it must have been like over one thousand years ago. It is truly hard to fathom how old the Roman Forum actually is.