The Edict of Diocletian

In 301 A.D. Emperor Diocletian created maximum prices for over 900 commodities as well as limits on freight weights and wages. This involved severe punishment to anyone who attempted to create a black market. To understand why it was necessary for Diocletian to create these price ceilings, we have to study the Roman currency debasement that started back in 54 A.D. Debasement happens when an empower cannot raise funds through heavy taxation or by confiscating the wealth of rivals, but rather must lower the value of the currency declining the purity of silver or gold within the coins. This type of currency debasement took place slowly from 54 A.D until 268 A.D with the percentage of silver within coins dropped from 94% to 2%. This decrease in value led to a depression of the culture and arts during these times periods as there was a real lack of a middle class. The article explains, "The task of ruling the world had been too great for Rome."

When Diocletian became emperor, he knew that the Roman economy was in danger. He started to make coins of gold, silver, and bronze which were back to the best standards of the Early Empire. However, there was not enough gold and silver available to back this strong of a currency. This led to two options: he could deflate the currency which would most likely bring down the whole civil and military government, or he could inflate the currency which would lead to a collapse. Diocletian decided instead to create the edict on maximum prices in order to prevent more of a decline in the value of their currency.

The edict was composed of a strange list that failed to include metals, iron, bronze, copper, tin, or lead, but was very specific about obscure commodities that I wouldn't think to matter. There was also peculiarly in the wages listed. These wages help us to see what type of work was the most valuable during these times and helps to paint a picture of the economic structures. These were listed in denarii communes which are a notional currency. This means that there was a given exchange rate telling how much of the currency in circulation at that time it took to equal one denarii commune.

These price ceilings are an early example of how economic institutions facilitated the growth and stability of the Roman Empire. If it wasn't for Diocletian's reform of the currency we wouldn't see nearly as much wealth and development in this region.