he state that John VIII was called upon to rule was in its final stage before the fall. Geographically, it comprised only Constantinople and its environs, while, on the domestic front, the decline was also markedly noticeable. Indeed, so bad was the economic situation that the Emperor could not afford to mint gold coins. The minting of gold coins had already been rare since the time of Manuel II. Now, during the reign of John VIII, the prevailing coin was the silver one.

Only in the Despotate of the Morea did the Byzantines continue to score successes against their Latin neighbours. In 1427, the count of Kephalenia and Epiros, Carlo Tocco, was defeated in a naval battle by the Byzantines and decided that it was preferable to reach an agreement with them. Thus, in 1428, he arranged for his niece to marry one of the despotai of the Morea, Constantine, giving her as dowry the rest of his domains in the Peloponnese. In 1430 Constantine occupied the city of Patras, while his brother Thomas defeated the Prince of Achaia, Centurione II Zaccaria, who gave his daughter in marriage to Thomas, endowing her with most of his possessions in the Morea. Thus, in 1430, the entire Peloponnese with the exception of Methone, Korone, Nauplia and Argos, which belonged to the Venetians, was in the hands of the Byzantines. When, two years later (1432), Constantine completely abolished the Principality of Achaia, he could hope for the creation of a Byzantine state on the Greek mainland. Events, however, were to take a completely different turn.