4 Major Historical Economic Collapses

#2 The Pazzi Conspiracy and Medici Banking Collapse of the 1470s

A medal by Bertoldo di Giovanni to commemorate the Pazzi Conspiracy (1478 ). Image source: Wikimedia Commons

To read this story for free, please click here.

Ever since 2008, the United States has been suffering an unending economic turmoil. The recent debates on the ‘fiscal cliff’ have brought the current financial crises back into the public focus. However, the collapse of the housing market and the Wall Street meltdown seem almost inevitable.

If anything, history bears witness to the fact that humans have always been drawn to certain economic schemes that ultimately lead to financial disaster. Let’s look at four such times in history when people have fallen for flawed financial strategies, resulting in catastrophic consequences.

1. The fall of the Roman economy in 4th century AD

Head from a statue of Roman Emperor Diocletianus. Image source: Flickr

The Emperor Diocletian ascended the throne in the 4th century — the time when Rome was already heading towards an economic disaster. Decades of costly wars, overambitious construction projects, and reckless financial policies had almost drained the empire’s treasury. Seeing the falling Roman currency…