The Byzantine Economy would face many challenges in the centuries after the 7th Century near implosion of the Empire. The Empire had clawed victory from a hard-fought war with the Sassanids only to lose important territories to the Muslim invaders after 632. The result of these twin crises, along with the plague of Justinian in 6th century helped to transform the empire into a more regional power with it’s economy now centered more on Coastal Anatolia and Thrace.
The empire would not have it easy going in the eighth centuries, considering that several areas in Northern Thrace and Eastern Asia Minor were depopulated. Recovery from the disasters of the seventh century was going to be slow and require an establishment of security as well as monetary reforms.
The urbanization trends that had so characterized the Byzantine state in the fifth and sixth centuries was no longer. Many cities became depopulated and the capital, the shiny jewel of the empire had a lower population than in the sixth century. It is estimated that the population of Constantinople was around 70,000 inhabitants. Some areas of Constantinople were partially ruralized, with agriculture filling up the shrunken environs of the city.
However, in spite of all these challenges, the Byzantines had something on their side; they had a strong and centralized state that was determined to turn the ship around. One of the things that the Byzantines had going for them was that the state had a centralized taxation system. The state asked for the taxes in this period to be paid in cash or gold coins. Constantine V’s edict that the taxes should be paid in cash resulted in the taxation system being mostly monetized by the tenth century. The state also taxed commercial transactions. This tax system was supervised by a competent civil service in Constantinople.
According to the book The Byzantine Economy, the Byzantine state was very poor in the eighth century and very wealthy in the tenth. The state was integral to the Byzantine economy being able to rebound in many ways. There was an institutional system that was implemented throughout the empire, allowing for scholars to be able to talk about an Byzantine economy. The standardization could be seen in the coinage, as the state maintained a monopoly on the minting of coins and these coins were used throughout the empire. The state also regulated the type of goods that be could be exported, such as important alimentary products such as grain, salt or wine. In a sense, the state had created a national market in which goods traveled throughout the empire.
The city of Constantinople played an important role in reviving the state’s attempts to revive the economy. By the ninth century, the city had managed to regain some of its population and in later centuries was to become a shining jewel in the empire’s crown. The city was a large contributor to consumer demand due to its large population. The Byzantine state was very interested in making sure that the population was able to be get sustenance as a riot could happen in the event of a famine. The government also regulated guilds in the city. The activities of the guilds were supervised by the government and also to make sure that no organization was able to create a monopoly in a market.
In terms of primary production in the Empire, agriculture was probably higher in its share of the economy than had been the case in the sixth century. The only real change in the tools used in this sector of the economy was the introduction of silk worms in sixth century by monks sent to China by Emperor Justinian. The agricultural production during this time was largely done by peasant landholders rather than the huge, sprawling estates of the Imperial Roman age.
Secondary production in the empire, in comparison with Western Europe, was mainly concentrated in the cities. Craftsman and traders were regulated into corporations, according to the laws that had been set by Justinian in the sixth century. In the capital, there was a concentration of elite demand that allowed for the flourishing of specialized craftsmen that worked in private and imperial workshops.
Trade continued to very important for the Empire during this era. Due to the high costs of land transport, except for goods like spice and silk, most trade during this era happened at sea. Compared to the massive grain ships that were used in Classical Roman age, merchant ships were being constructed in more economical sizes. The military would also be responsible for protecting convoys of ships that were carrying valuable goods.
Coin hoards that have been discovered are important to understanding the state of the economy during this period. There are dozens of gold coin hoards that have been dated to the sixth century to seventh century, which represents that Byzantine Empire’s economic strength during that time. In comparison, there are only 11 gold coin hoards that can be attributed to 700 to 950 ad. However, after the 830s Ad, things start to change in the economic situation in the Byzantine Empire. In the urban areas of Greece, there is an increase in the circulation of coins
Overall, the Byzantine state had managed to survive the tribulations of the 7th Century by adapting to new circumstances. This meant that the state had created a foundation for its economic revival in 11th and 12th centuries.
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