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= The Financial Crisis of 33 A. D. =

Summary
In A.D. 33 a noteworthy monetary and money related emergency struck the City of Rome, capital of the Roman Empir e. The emergency more likely than not established a huge connection on the world at the time; generally, the three extraordinary history specialists of the period (Tacitus, Suetonius, and Dio) would not have featured it. The emergency of 33 A. D. started by the indictment of cash loan specialists who charged illicit rates. High rates of intrigue are obviously a typical side effect of contracted cash Since the grain supply of Rome was at the time in basic condition, with numerous mini crises, such information can sensibly be ventured to demonstrate as it were particular value changes in a short product, not an adjustment in the general value level. Supplanting the numismatic information utilized by before researchers with a sensible depiction of government uses puts the investigation of the conditions encompassing the emergency of A.D. 33 on an all the more financially respectable balance.The option or supplementary clarification would be that the extreme decrease of the cash supply due to its vanishing into the state, coffers smothered the ordinary exhibit of business and private exchanges of the city autonomously of building movement. this were true, the crisis might be considered a straightforward money-supply crisis .At last, the Emperor Tiberius ventured in, he made remarkable credits to arrive proprietors that were without premium for a long time, infusing liquidity into the market.There was no Wall Street in 33 AD, the financiers were not viewed as individuals of high social standing, they didn't have much power or impact. However, the mechanics of the monetary emergency of 33 AD was much the same as the one we've watched so far in 21st century.

History
Augustus (23 September 63 BC – 19 August 14 AD) was a roman statesman and military leader who served as the first emperor of the Roman Empire. He ruled Roman Empire form 27 BC to 14 AD. He inherited 66,000,000 sesterces (An ancient Roman coin and monetary unit equal to one quarter of a Denarius. ) from his great uncle Julius Caesar and a good sum of amount from his parents.

Within the Empire, in exchange for peace and governmental services, Rome received payments from its provinces in several ways. The provinces contributed grain, in kind, to the city, and the grain was distributed directly to the free citizens in the city. No money was involved. The provinces also paid monetary taxes and tribute to the city. These payments were made to the government, although the official collecting them was expected to profit personally in the process. The state used provincial taxes to pay residents of Rome for such things as construction, arms, and government wages. The tax money citizens in Rome received returned to the provinces as private payments for imported goods and services.

In 30 B.C. he possessed himself of the royal treasures of Cleopatra (69 BC - 10 or 12 August 30 BC). Cleopatra had, in preparation for a long war, taken in all the temple treasures of the land, and had confiscated the properties of those hostile to her. So the treasure was readily served to Augustus when Cleopatra died. Then he could seize all the Ptolemaic palaces and estates, the properties of the Alexandrian officers and nobles who had taken part in the war against him, and impose heavy fine on may others. From this he paid out some 600,000,000 sesterces for Italian land for his discharged veterans; he lavished large sums on the populace of Rome; he repaired all the roads of Italy and the streets of Rome at great cost; he restored 82 temples and built many new ones; he aided many cities of Italy by gifts of aqueducts, public baths, temples, and fora. Estimated the sums that flowed out to the public in 30-27 B.C. was about one thousand million sesterces which was twice the normal budget of the state.

In the first twenty years of his reign, Roman Empire showed a rapid expansion in the currency flow of the economy. Thereafter, when Augustus visited Spain he opened several mines which were very much active in the year 25-16 B.C. which was exactly opposite to the later years of his reign.

Augustus nearly possessed 600,000,000 sesterces at the end of his life. After the death of Augustus, Tiberius (16 November 42 BC – 16 March 37 AD) was made emperor of the Roman Empire. He ruled Roman Empire form 14 A.D. to 37 A.D. In his early years he was not as keen as Augustus to lead the senate, he wished senate and state to act without him. His orders were generally vague. Tiberius also repudiated Augustus's policies. Augustan building program ended when his architect subordinate Agrippa(12 BC – 20 August AD 14) died. The building programs under the rule of Tiberius were next to zero during the eight-year period immediately preceding the crisis of 33 AD. Tiberius was also known for his stinginess. On his Death it was found that he had stored up 2,700,000,000 sesterces in his treasury.

Traditional values
Promoting himself as the man who would return Rome’s past glory, Augustus claimed that only by restoring the traditional values that had first made Rome great could he hope to make it great again. One writer commented: ‘He renewed many traditions which were fading in our age and restored 82 temples of the gods neglecting none that required repair at the time.’

As ruler of Rome, Augustus had to lead by example. He re-established traditional social rules and religious rituals, sacrificing animals to Rome’s gods. In 12 AD he made himself Pontifex Maximus, the chief priest of Rome and head of the Collegium Pontificum, the highest priests in the land.

These initiatives were very popular. To many Romans, the reign of Augustus marked the point at which Rome had rediscovered its true calling. They believed that, under his rule and with his dynasty, they had the leadership to get there. At his death, Augustus, the ‘son of a god’, was himself declared a god. His strategy had worked.

Equestrians
Under Augustus, day by day life in Rome changed from numerous points of view. One major one was the move in a couple of real social classes. We should begin by taking a gander at the equestrians. Equestrians were individuals from a high social class however were not as high as legislators. They were similar to a Roman upper white collar class. This class had first been sorted out back in the times of the Republic, and as the name suggests, was initially earned through participation in the Roman mounted force. Before the finish of the Republic, they were a class of specialists and chairmen.

While the representatives of the Republic had regularly been suspicious of this authoritative class, Augustus considered them to be basic to the framework of the realm. He redesigned this class, making it both piece of the military and still accountable for business and building ventures. He additionally made enrollment in this class open to non-Romans, and it turned into a well known route for individuals over the realm to acquire social power. For a considerable length of time, the equestrians would be among the most imperative parts of the every day organization of a standout among-st the most viably sorted out domains on the planet.

Freedmen
The other social class to be redesigned under Augustus was at the contrary end of the scale. Rome had numerous slaves, and as the realm developed, the quantity of slaves expanded radically. Presently, Roman slaves could by and large expect opportunity in their lifetimes, making them a low class of Roman residents called freedmen. Augustus stressed over the effect this could have on Rome. Along these lines, he supervised the formation of new laws that limited the capacity of Romans to free their slaves. Liberating slaves was as yet conceivable, however it was more managed under Augustus. The enormous change here was that lone slaves who had acted well could be liberated. The objective was to just give citizenship to slaves who might make great Romans. With the ascent of the domain, the assorted variety of slaves expanded, so just the individuals who appeared to be ready to acclimatize to Roman culture were liberated.

Reasons behind the crisis
· One of the main reasons behind the crisis was the ruler of the roman empire Tiberus. He was frugal in his expenditures and due to which he never raised the taxes during his reign. When he got a  chance to raise the tax during Cappadocia’s  province. He rather lowered the taxes instead of raising them. His frugality  enabled him to be liberal in helping the regions when, for instance, an enormous seismic tremor annihilated a considerable lot of the celebrated urban areas of Asia, or when a money related frenzy struck the Roman Realm in 33 AD.

· The important firm of Seuthes and Child, of Alexandria, was facing challenges due to the loss of three lavishly loaded ships in a Red Ocean storm, trailed by a fall in the estimation of ostrich feather and ivory. About a similar time the immense place of Malchus and Co. of Tire with branches at Antioch and Ephesus, all of a sudden wound up bankrupt because of a strike among their Phoenician laborers and the misappropriations of a freedman manager. These disappointments influenced the Roman saving banking house, Quintus Maximus and Lucious Vibo. A run initiated on their bank and spread to other keeping banking houses that were said to be included, especially Brothers Pittius.

· Agriculture had been on the declining for long time, and Tiberius required that 33% of each senator’s fortune be put resources into Italian land. The legislators had about one and half year to make this modification, yet when the period was up, numerous senators had neglected to make the best possible alteration. The due date occurred in the meantime as the occasions above happened, putting a further fall in the financial sector.

· The financial panic occurred over the time of  few weeks, one fall hastening the other, similarly as issues at Lehman, AIG and Morgan Stanley immediately prompted issues in different parts of the financial sector and the real economy

Responses to the crisis
In response to the crisis ,emperor Tiberius came to the rescue. He stepped in and implemented the quantitative easing. He made loans to the land owners interest free for three years ,thus injecting liquidity.100 million sesterces were taken out of the imperial treasury and distributed among worthy bankers so it could be landed out to the neediest on which no interest was collected.

For this the borrower had to give twice the valuation of estates as security. This ensured that people avoided selling their estates at lower price ,which controlled liquidity and ensured that lack of liquidity never occurred.The decrees which had precipitated the problem were suspended .Sextus marius was accused of treason and his property ,including mines was confiscated .The gold and silver mines were also brought under the fiscus.

Relating Crisis of 33 A.D. to 21st Century
Crisis A.D. 33 is a liquidity crisis and subsequent rescue. The Great Recession from 2008 was similar to the crisis occurred under the Tiberius in  A.D. 33. The main reason of this crisis was money shortage. In response of this crisis they implemented rescue package of loans. Some of the scholars compared the crisis with Great Recession and found out that both having too much government intervention in financial and real estate markets. At the time of crisis they also introduced some programs to handle the financial crisis such as quantitative easing programme, this programme was also introduced in 2010 by federal reserve as it is an indirect way to offer incense at the altar of the heads of central banks. In 2015, Sir Jon Cunliffe, Deputy Governor of Financial Stability of the Bank of England sung the virtues of Tiberius in A.D. 33 in order to justify new sweeping “macroprudential” powers for central banks and global financial entities such as the International Monetary Fund and the Bank for International Settlements.

Over the past century the meaning and significance of crisis has changed again and again. Both ancient and modern occurred at the same time during the period of economic uncertainty. Later during Black Monday Crash in 1987 and a punctuated recession in 1990, the crisis was once again brought up and characterised as “Keynesian Depression”. The record of the past eighty years of the crisis are are interpreted or even appropriated in order to provide some views on the modern economy. Also at the time of crisis the economic boom was so great that prices suddenly jumped, interest rates dropped sharply and land values soared. At that time public spending was not resumed which led to a contracting money supply and predictable. The contemporary wisdom blamed at the time of Great Depression on monetary contraction was similar cause of the crisis of A.D. 33.