With the restoration of firm central government , the empire became fabulously wealthy . The population was rising ( estimates for Constantinople in the 12th century vary from some 100,000 to 500,000 ) , and towns and cities across the realm flourished . Meanwhile , the volume of money in circulation dramatically increased . This was reflected in Constantinople by the construction of the Blachernae palace , the creation of brilliant new works of art , and general prosperity at this time : an increase in trade , made possible by the growth of the Italian city-states , may have helped the growth of the economy . It is certain that the Venetians and others were active traders in Constantinople , making a living out of shipping goods between the Crusader Kingdoms of Outremer and the West , while also trading extensively with Byzantium and Egypt . The Venetians had factories on the north side of the Golden Horn , and large numbers of westerners were present in the city throughout the 12th century . Toward the end of Manuel I Komnenos 's reign , the number of foreigners in the city reached about 60,000 – 80,000 people out of a total population of about 400,000 people . In 1171 , Constantinople also contained a small community of 2,500 Jews . In 1182 , all Latin ( Western European ) inhabitants of Constantinople were massacred
were massacred
Massacre of the Latins
Constantinople