A Study On The Evolution Of The Monetary System Of The Ottoman Empire(1326-1914)

According to changes in the functional currency,the six-century monetary history of the Ottoman Empire can divide the monetary system into five periods.From 1326 to 1477,The silver-based monometallic period;from 1477 to 1585,the bimetallic period based on silver and gold;from 1585 to 1690,a period of bimetallism crisis;from1690 to 1840,a new bimetallic system and disintegration;from 1840 to 1914,from a new bimetallic system to the “ limping gold standard system ”.The evolution of the Ottoman monetary system has the following characteristics.First,within the territory of the Ottoman Empire,the central government did not enforce a single monetary system.From the borders of Hungary to various parts of the coastal areas of North Africa,various types of currencies are circulating.The Ottoman Empire not only does not restrict the circulation of foreign currencies,it regularly publishes the exchange rates of these currencies,and in many cases also uses European currencies to collect taxes and pay officials and soldiers for salaries.Since the fourteenth century,coins from European countries and other countries have been a permanent part of the Ottoman monetary system.Second,the evolution of the Ottoman monetary system is closely related to changes in currency values.First,since the early Middle Ages,the trade deficit between Europe and the Levant and the trade deficit between the Levant and the East(Iran and India,China)have become a structural model.Under the influence of this trade structure model,a large number of currencies will flow from Europe to the east,while the Ottoman Empire is a transitional region for intercontinental currency flows.Second,the floating value of the Ottoman currency is closely related to the intercontinental currency movement.When the currency flows to the Ottoman market,the Ottoman currency tends to be stable,and the stability of the currency means that the Ottoman currency system is stable.Conversely,when money flows from the Ottoman market to the East,Ottoman currency tends to depreciate easily,and currency depreciation means that the Ottoman monetary system is turbulent.All in all,the currencydepreciation policy played a major role in the changes in the Ottoman monetary system.The currency depreciation policy was introduced during the reign of Muhammad ?.The depreciation of the currency has not only provided funds for imperial military operations,but also expanded the role of the central government.Most importantly,currency devaluation meets the ruler's need for the growing demand for precious metals and fiscal revenue growth.In the long history of Ottoman currency,there have been two phase changes in the value of the currency.First,during the period from 1326 to 1560 and after 1844,the currency value was relatively stable.Second,in the late 1580 s,especially between 1760 and 1844,the currency depreciation was very high.It was not until 1844 that the Ottoman Empire government abandoned the currency depreciation policy.In addition,Interventionist economic policies have played a certain role in the changes of the monetary system.This policy appeared during the period of Muhammad ?.The purpose of the government's interventionist policy is to maintain the stability of the monetary system or prevent the deterioration of the devaluation.Finally,the trajectory of the evolution of the Ottoman monetary system is similar to the overall development of the Ottoman Empire,both from the beginning of the founding of the country until1922.But the rest of the monetary system did not completely disappear until the mid-20 th century.