Financial crisis of 33

A financial and economic crisis occurred in 33 CE in the Roman Empire, during the reign of Emperor Tiberius. After a shift in government policy and a series of confiscations reduced the Roman money supply, the crisis was triggered by the invocation of an old law which resulted in the early recalls of loans given, a credit crunch, and a crash of real estate prices. The crisis was eventually resolved with a liquidity injection in form of interest-free loans. According to Tacitus's Annals, Julius Caesar had passed a law in 49 BCE which regulated usury, requiring lenders to possess a certain quantity of farmland in Italy. The law had been passed as a wartime measure to prevent capital flight from Italy, but it had been largely ignored. During the early reign of Augustus, the Roman government significantly expanded the money supply through cash handouts, extensive public works projects, and acquisition of Italian agricultural land for veterans to settle (these being partly funded by Egypt's treasury). As a result, interest rates fell significantly, from around 12 to 4 percent per annum. However, later in his reign, public investment declined, and his successor Tiberius exacerbated the reduction through his frugal spending. The Roman government ran a significant budget surplus throughout Tiberius's reign and accumulated large fiscal reserves. Despite the stagnating money supply, gold and silver coins flowed out from the Roman Empire to pay for imports of luxury goods, especially from India. Following the arrest and execution of Sejanus in 31 CE, his followers were prosecuted and their assets seized for the benefit of the Roman state. Additionally, several major business houses had become bankrupt due to external events and a bank run had occurred when a banking house failed with other banks refusing to bail it out. These events resulted in a general decline in prices of real estate and agricultural land, prompting the Roman government to intervene. In 33 CE, Roman courts began to enforce Caesar's law and prosecute a number of citizens who were in violation.