Changes

[[File: Diocletianbust.jpg|300px|thumbnail|left|Bust of the Emperor Diocletian]]

Any lesson that could have been learned by the Ptolemies’ fiscal policies was completely ignored by the Romans during the early Empire; but in retrospect they probably thought that their strong economy would continue forever. After the smoke of the Civil Wars cleared and Octavian/Augustus was declared emperor, Rome experienced nearly 200 years of solid economic growth. The gross domestic product of the early Roman Empire was similar to that of AD 1700’s Spain <ref>Temin, p. 135</ref> and the famed Roman roads, known as <i>vias</i>, evolved from being used primarily by the military to also link together far flung markets. <ref> Matthews, John. “Roman Life and Society.” In <i>The Oxford History of the Roman World.</i> Edited by John Boardman, Jasper Griffin, and Oswyn Murray. (Oxford, Oxford University Press, 2001), p. 394</ref>

As the economy of the early Roman Empire grew, sound fiscal policies under Tiberius (reigned AD 14-37) and other early emperors helped keep inflation in check. The money supply increased proportionately with the increase in trade. Taxes were also kept low: each province only paid a one percent wealth tax and a flat tax on all adults. All of this helped keep prices low and the wheels of government moving effectively, but by the end of the second century AD things began to change.