Then a general fought his way to power – Diocletian (284-305AD).

During this period, inflation soared. Money really became in kind and the purchasing power of the debased coinage collapsed with the lack of confidence in government. This became akin to the crisis in Germany during the 1920s. People simply did not really accept the debased Roman coinage.

It was Diocletian who instituted wage and price controls and issued an edict on restraining prices.

First you have the massive DEFLATION and then government is forced to debase the money supply that finally reverses the economy sending it into a INFLATIONARY spiral.