The Impact of the Silver Crisis on the Ghaznavid Economy

One of the most important financial sources of the Ghaznavid economy in the early period, from the establishment of slaves led by Alpetikin and Sabuktigin in Ghazni (351 AH) to the end of the reign of Sultan Mahmud (421 AH) was reliance on the system of booty, which was the main support for minting high quality coins. But since the reign of Sultan Massoud (432-421 AH) faced a silver crisis, during which the value of the currency decreased and the number of high-denomination coins also decreased. Hence, the later Ghaznavid sultans turned to other easy-to-reach incomes to cover their current and military expenses. It is assumed that the silver crisis due to the reduction of grade and its lack of equipment for the troops led to the evolution of Ghaznavids' sources of income from the looting system to become more dependent on the revenues of the tax system. The method used in this research is descriptive-analytical based on qualitative and quantitative evidence and coinage study. The results show that the decline in conquests in India, the costs of the succession dispute, and the huge costs in unproductive affairs have left the Ghaznavid facing a silver crisis and a devaluation of the currency and as a result, the Ghaznavid sultans resorted to the revenues of the tax system to compensate for the lost financial resources, especially the provision of cash to their troops in the form of remittances and double impositions, which also added to the difficulty of governing them.