section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Following the split of the Western and Eastern Roman Empires, the West fell victim to political instability, social unrest, civil war, and invasions from foreign powers. In contrast, the Byzantines remained comparatively stable, allowing for the growth of a flourishing and resilient economy. Institutional stability, such as the presence of a legal system, and the maintenance of infrastructure created a secure environment for economic growth. In the 530s, the territory of the empire encompassed both a massive population of around 30 million people and a wide array of natural resources. The Byzantines had access to resources such as abundant gold mines in the Balkans or the fertile fields of Egypt. Large sections of the Byzantine population lived within the many urbanized settlements inherited from the previously unified Roman Empire. Constantinople, the capital of the empire, was the largest city in the world at the time; it housed at least 400,000 people. These cities continued to grow during the 6th century, with evidence of massive construction projects suggesting that the Byzantine treasury remained strong. During the 5th and 6th centuries, rural development continued alongside urban development; the number of documented agricultural settlements increased significantly during this period. Although the reconquests of North Africa and Italy by Justinian I were expensive and draining campaigns, they reopened Mediterranean trade routes and parts of the Roman west were reconnected with the east.
  
  The Plague of Justinian caused significant demographic decline, negatively affecting the production and demand of the Byzantine economy; consequently, the Imperial treasury took a substantial hit. Economic downturn was worsened by conflicts with the Slavs, Avars, and Sassanids. Heraclius waged numerous campaigns to fend off the mounting threats to the empire, recovering the wealthy provinces of Syria, Egypt, and Palestine. However, these short-term fortunes were quickly reversed following the Arab conquests. Beginning in the 630s, the Arab wars with the Romans halved Byzantine territory, including rich provinces such as Egypt. These collective disasters led to severe economic deterioration, culminating in large-scale deurbanization and impoverishment throughout the empire. Demographic and urban decline sparked the destruction of trade routes, with trade reaching its lowest point by the 8th century. Isaurian reforms and Constantine V's repopulation, public works, and tax measures marked the beginning of a revival that continued until 1204 despite territorial contraction. From the 10th century until the end of the 12th, the Byzantine Empire projected an image of luxury; travellers were impressed by the wealth accumulated in the capital.
  
  The Fourth Crusade led to the disruption of Byzantine manufacturing and the commercial dominance of the Western Europeans in the eastern Mediterranean, both events which amounted to an economic catastrophe for the empire. The Palaiologoi tried to revive the economy, but the late Byzantine state could not gain full control of either foreign or domestic economic forces. Eventually, Constantinople also lost its influence on the modalities of trade, price mechanisms, control over the outflow of precious metals and, according to some scholars, even over the minting of coins.
  
  The government attempted to exercise formal control over interest rates and to set the parameters for the activity of the guilds and corporations, where they held special interests. The emperor and his officials intervened at times of crises to ensure the stockpiling of provisions for the capital and to keep the prices of cereals affordable. Finally, the government often collected a part of the economic surplus through taxation, and put it back into circulation through either redistribution in the form of salaries to state officials or in the form of investment in public works.
  
  One of the economic foundations of Byzantium was trade, fostered by the maritime character of the empire. Textiles must have been by far the most important item of export; silks were certainly imported into Egypt and appeared also in Bulgaria and the West. The state strictly controlled internal and international trade, and retained the monopoly of issuing coinage, maintaining a durable and flexible monetary system adaptable to the needs of trade.