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Roman Currency Debasement, Coin Clipping and Ancient Keynesianism
The decline of the Roman Empire is attributed to the systematic debasement of its currency, starting with Nero and continuing through emperors like Diocletian. By "clipping" coins and reducing their gold content, the Roman state engaged in an ancient form of Keynesianism, attempting to spend its way out of decline. This loss of purchasing power eventually led to the collapse of the empire and the rise of feudalism.