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Economy of the Han dynasty
The Han dynasty (206 BC – 220 AD) of ancient China experienced contrasting periods of economic prosperity and decline. It is normally divided into three periods: Northern Han (206 BC – 9 AD), the Xin dynasty (9–23 AD), and Eastern Han (25–220 AD). The Xin regime, established by the former regent Wang Mang, formed a brief interregnum between lengthy periods of Han rule. Following the fall of Wang Mang, the Han capital was moved eastward from Chang'an to Luoyang. In consequence, historians have named the succeeding eras Western Han and Eastern Han respectively.〔; .〕
The Han economy was defined by significant population growth, increasing urbanization, unprecedented growth of industry and trade, and government experimentation with nationalization. In this era, the levels of minting and circulation of coin currency grew significantly, forming the foundation of a stable monetary system. The Silk Road facilitated the establishment of trade and tributary exchanges with foreign countries across Eurasia, many of which were previously unknown to the people of ancient China. The imperial capitals of both Western Han (Chang'an) and Eastern Han (Luoyang) were among the largest cities in the world at the time, in both population and area. Here, government workshops manufactured furnishings for the palaces of the emperor and produced goods for the common people. The government oversaw the construction of roads and bridges, which facilitated official government business and encouraged commercial growth. Under Han rule, industrialists, wholesalers, and merchants—from minor shopkeepers to wealthy businessmen—could engage in a wide range of enterprises and trade in the domestic, public, and even military spheres.
In the early Han period, rural peasant farmers were largely self-sufficient, but they began to rely heavily upon commercial exchanges with the wealthy landowners of large agricultural estates. Many peasants fell into debt and were forced to become either hired laborers or rent-paying tenants of the land-owning classes. The Han government continually strove to provide economic aid to poor farmers, who had to compete with powerful and influential nobles, landowners, and merchants. The government tried to limit the power of these wealthy groups through heavy taxation and bureaucratic regulation. Emperor Wu's (r. 141–87 BC) government even nationalized the iron and salt industries; however, these government monopolies were repealed during Eastern Han. Increasing government intervention in the private economy during the late 2nd century BC severely weakened the commercial merchant class. This allowed wealthy landowners to increase their power and to ensure the continuation of an agrarian-dominated economy. The wealthy landlords eventually dominated commercial activities as well, maintaining control over the rural peasants—upon whom the government relied for tax revenues—military manpower, and public works labor. By the 180s AD, economic and political crises had caused the Han government to become heavily decentralized, while the great landowners became increasingly independent and powerful in their communities.
==Monetary system and urbanization==
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