The effect of monetary policies on the relations between the Safavid government and the Ottoman Empire and its consequences

Bayati, Hadi

doi:10.30465/sehs.2023.44044.1884

The effect of monetary policies on the relations between the Safavid government and the Ottoman Empire and its consequences

Document Type : .

Author

hadi bayati

3- Assistant Professor, Department of Islamic Theology, Faculty of Theology and Islamic Studies, University of Mazandaran, Babolsar, Iran

https://doi.org/10.30465/sehs.2023.44044.1884

Abstract

Introduction
Monetary policy is the use of government expenditures and revenue-generating activities to achieve specific goals, budget deficit or surplus, and regulation of economic growth and stability. Since in order to fight the economic problems of regulating the government's income and controlling prices, monetary policies are very important levers that if used correctly can contribute to economic, political, social and economic stability and development. The culture of the country should play a very constructive role. In the past, governments usually used specific monetary policies to advance their political goals and run the country. If one of the influencing factors on the monetary policy of any government is the use of currency fluctuations and how to control it. During the Safavid period, due to the formation of tense relations between the two Iranian and Ottoman governments, each of them adopted specific monetary policies towards each other. In this period, because gold and silver ornaments were considered as an intermediary factor in exchanges, they were noticed by the Safavid and Ottoman governments. Also, since the gold and silver required for minting coins in Iran were mostly supplied from outside the country, and one of the ways to enter the country was through the territory of the Ottoman government. Therefore, in order to advance their political and economic goals, these governments took measures that affected their relations by taking advantage of certain policies in the field of conflicts in the event of war and conflict. In this regard, the current research, relying on variables such as the policy of prohibiting the entry and exit of foreign currency, the creation or merger of border mints, the increase of the conversion tariff for muskets, monitoring the value of muskets and paying attention to the silk trade, tries to use historical sources and research. Turkish historians should answer these main questions: what monetary policies did the Safavid and Ottoman governments use against each other? What effect did these monetary policies have on the political and commercial relations of the Safavid and Ottoman governments?
Research method:
The research method in this research is library and document type.
Findings:
During war and enmity, the Ottoman government prevented gold and silver from entering Iran in order to advance its political goals and economic sanctions against the Safavid government. In contrast, the Safavid government, in order to bypass the Ottoman trade embargoes, pursued the policy of supplying muskets from inside Iran by extracting new mines and supplying muskets from outside Iran, by expanding trade relations with European countries. In addition, the use of these monetary policies had many consequences for both governments, including the change of Iran's traditional trade routes from the Ottoman territory, the lack of gold and silver coins in Iran, and the relative deprivation of the Ottoman government from the resulting income. Pilgrimage of Hajj and shrines of highness, merger or destruction of mints in two countries, development of silk trade and growth of Iran's trade balance with western countries.
Discussion and conclusion:
Due to religious and political differences, the Ottoman and Safavid governments always tried to attack each other by using certain monetary policies. The Ottoman government has always taken advantage of monetary policies such as banning the departure of gold and silver coins from its territory, establishing border mints to increase the conversion tariff of coins and reduce the value of coins, increasing the cost of customs, and affecting Iran's trade. He was hitting. On the other hand, the Safavid government, in order to prevent the shortage of foreign currency, adopted special monetary policies, which included: paying attention to the increase of silk exports and the introduction of gold and silver ornaments into the country by changing the traditional trade routes to the north and south. Iran and the expansion of trade relations with the western and northern countries of Iran; Establishing new rules for Iranian pilgrims who were going to pilgrimage and pilgrimage and encouraging pilgrimage to the holy shrine of Imam Reza (a.s.) in Iran.

Keywords

Monetary policy

gold

silver

Safavid

Ottoman

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