Join the new world

DEFLATION IN HORIZON

Management of eRepublik started rumors about gold donation and bonuses from Day 1,203. Allegedly, every player will get some small amount of gold every day, trough monetary market or trough donations. That means that total amount of gold will dramatically been increased. The deflation would be inevitable.

What does this meaning?

"In economics, deflation is a decrease in the general price level of goods and services. Deflation increases the real value of money – the currency of a national or regional economy. This allows one to buy more goods with the same amount of money over time."

Briefly, GRD would be more valuable. Transfer ratio gol😛GRD will go in favore of GRD.



There would be more gold on market, with same amount of GRD. So, that would be resulted that people would start to give less GRD for the same amount of gold. We can expect return exchange rate bellow 60 GRD for one gold.

There are two scenarios.

1. Government could react and start to print large amounts of GRD on market to maintain exchange rates. It is questionable move, because in this moment economic crisis is all over e-World (One year ago, worker with skill 4 can earn salary of 0.5g. Today, worker with level 11 is working for about 0.25g and prices for apprentices are 0.15g.



2. If government make decision not to intervene on monetary market, value of gold would be a little bit lower day by day. There are significant possibility to make huge profit in that case. What should you do? Just buy GRD, and buy it a lot. Do it before day of 1,203.

Management of eRepublik says that this measure would be included to stop inflation of national currencies, and (probably) to make repairs of market damages caused by manager works in companies.

It is hard to say what should you do now. If you are ready to gamble, I suggest you to start buying GRD. But, all depend of two things, what would be introduced in game on Day 1,203 and how government will react on possible deflation.

In other way, our workers could make some hopes for better wages measured in golds. And exchange rate is unpredictable, and gold is gold.

Thank you for your reading. Because of technical problems this text is written on English, and not on Greek. If you make it interesting, you can vote for it or make sub. If you not, it is not a problem. 🙂

If you are interested to publish this text in your newspaper in Greek version, please notify me about it, and put some link in your article to my newspapers or put notice about source article. You are free to use it.

I am not expert in economics so these informations you should use with some reserves.

Manager of F2S Corporation,

Foxdesetubal