Edict On Maximum Prices - Mechanics

Mechanics

The full mechanics of the decree have been lost. No full decree has been found, as it exists only in fragments. However, enough of the decrees text is known so that the following is understood to be true.

All coins in the Decrees and the Edict were valued according to the denarius, which Diocletian hoped to replace with a new system based on the silver argenteus and its fractions. The argenteus seems to have been set at 100 denarii, the silver-washed nummus at 25 denarii, and the bronze radiate at 4 or 5 denarii. The copper laureate was raised from 1 denarius to 2 denarii. The gold aureus, which by this time had risen to 833 denarii, was replaced with a solidus, worth 1,000 denarii (this was different from the solidus introduced by Constantine a few years later).

These coins held their value during Diocletian's reign, but aside from the bronze and copper coins, which were mass produced, they were minted only very rarely and had little effect on the economy.

These newly issued coins added to inflation. This inflation is understood to be the reason the decree was issued. Issues of economic system feedback were not well understood at the time.

The first two-thirds of the Edict doubled the value of the copper and bronze coins, and set the death penalty for profiteers and speculators, who were blamed for the inflation and who were compared to the barbarian tribes attacking the empire. Merchants were forbidden to take their goods elsewhere and charge a higher price, and transport costs could not be used as an excuse to raise prices.

The last third of the Edict, divided into 32 sections, imposed a price ceiling - a maxima - for over a thousand products. These products included various food items (beef, grain, wine, beer, sausages, etc.), clothing (shoes, cloaks, etc.), freight charges for sea travel, and weekly wages. The highest limit was on one pound of purple-dyed silk, which was set at 150,000 denarii (the price of a lion was set at the same price).