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Financial crisis

The Empire suffered multiple serious crises during the third century. The rising Sassanid Empire inflicted three crushing defeats on Roman field armies and remained a potent threat for centuries. Other disasters included repeated civil wars, barbarian invasions, and more mass-mortality in the Plague of Cyprian (from 250 onwards). For a short period, the Empire split into a Gallic Empire in the West (260–274), a Palmyrene Empire in the East (260–273), and a central Roman rump state; in 271, Rome abandoned the province of Dacia on the north of the Danube. The Rhine /Danube frontier also came under more effective threats from larger barbarian groupings, which had developed improved agriculture and increased their populations. The average stature of the population in the West suffered a serious decline in the late second century; the population of Northwestern Europe did not recover, though the Mediterranean regions did.

The Empire survived the "Crisis of the Third Century", directing its economy successfully towards defense, but survival came at the price of a more centralized and bureaucratic state. Excessive military expenditure, coupled with civil wars due to unstable succession, caused increased taxes to the detriment of the industry. Under Gallienus (Emperor from 253 to 268) the senatorial aristocracy ceased joining the ranks of the senior military commanders. Its typical members lacked interest in military service, and showed incompetence at command.

Under Constantine, the cities lost their revenue from local taxes, and under Constantius II (r. 337–361) their endowments of property. This worsened the existing difficulty in keeping the city councils up to strength, and the services provided by the cities were scamped or abandoned. Public building projects had declined since the second century. There is no evidence of state participation in, or support for, restoration and maintenance of temples and shrines. Restorations were funded and accomplished privately, which limited what was done. A further financial abuse was Constantius's habit of granting to his immediate entourage the estates of persons condemned for treason and other capital crimes. This practice reduced future, though not immediate, income; those close to the emperor also gained a strong incentive to encourage his suspicion of conspiracies.