Economic Policy Update: Currency Revaluation and Food Prices
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by intrepid132
So, as you should all know by now, the Bank of England has recently published that they are going to change their target exchange rates for GBP. (http://www.erepublik.com/en/article/new-exchange-rate-benchmarks-increasing-the-value-of-the-pound-703645/1)
With 1 GBP equalling 0.032 Gold, instead of 0.028 Gold,
and 1 Gold Equalling 40 GBP, instead of 38 GBP.
Now, to my eyes, being inexperienced in eRep currency trading, these seem to be very minor figures. However, in my relentless pursuit of research on the forums, I have discovered that the Bank of England is in fact spending not insignificant quantities of both gold and GBP to achieve these levels. It seems that people just aren't understanding that these changes are good, at least for international businessmen.
I don't really see a change to the average citizen, however. It does take longer to earn enough GBP to buy gold, but with being given 5 gold at level 6, this isn't too much of an issue. The average citizen is much more concerned by the rapid rise in food prices. Even at skill level 3, many job offers come with a salary of only 1 GBP! While Q1 food is at the affordable 0.44GBP, Q2 food is at 1.32. With NHS coverage across the country currently patchy, due to lack of directors and the Org bug where only the first page of friends is visible, many newer players are having their wellness steadily degraded, despite working every day. Newer players can almost be "working themselves into the grave" by getting out of the DoW and other Q1 companies. With gold needed for so many other features in this game, it is a shame to have to be spending it just to eat Q2 food.
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Comments
Pertamax
I think the thing to remember is that these changes in the exchange rates should be helping businesses. Competition between companies that are doing well should then increase and should lead to companies fighting for employees throught increases in pay and benefits. Hopefully this will pay off and any problems that people face with being able to afford food will ease. But we'll just have to wait and see what effect it might have.
In the meantime if anyone is suffering I would recommend that they ask their neighbours for help - we won't bite!
Good article.
I think there needs to be better advertising about how to get on the NHS, im about 2 weeks old i think and I still cant find it, i spent 2 gold on 10 health, but it really isnt worth it.
Surely a lower minimum wage would mean cheaper food and thus mean people would be able to (once they get higher wages) get gold easier.
I'm sure my esteemed fellow journalist will not mind some "shameless advertising"
http://www.erepublik.com/en/article/lower-the-minimum-wage--703939/1
I do feel some massive reform into the lower end buisnesses is needed to prevent a total collapse of industry which at the moment prevents small buisnesses being able self sustain, let alone to grow to compete with the current big buisnesses.
Hey, viper, I love shameless advertising, for news articles 😛
The problem is, food prices can't go down any more. With the change in the productivity formula, each RM worker makes significantly fewer units. I think the exact number is like 1/4 or something, of what they made in early november. Right when I started, Q2 food was at like 0.16 GBP, and that is just ridiculous. The only real way to be able to afford to buy more gold is when you level up, and get paid more. Also, since you are rewarded with 5 gold once you get to level 6, most newbies don't need to buy gold. The only thing they need gold for is a newspaper, or maybe starting an org. Once the kinks in the NHS are worked out, it'll all be going smoothly.
To get into the NHS, you search you region area, and clinic. For example, I'm in Scotland, so I'm friends with Scotland Clinic. If you're in London, then befriend "London Clinic". The problem is, there's a bug with orgs, so only the first 9 friends are visible to anyone, and therefore, they're the only ones getting treatment. as soon as that's fixed, everything will go more smoothly.