Forecasting on Principles of Economics
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by lucifer_ultionis
I was arguing why the Exchange Rate would eventually get to be 200 (of a National Currency) per Gold one month ago in this article and that article.
Also I was arguing that an exchange rate of 200 National Currency(in our case Roni) per Gold would be the optimal exchange rate due to the fact that IT also COSTS us money (Gold) to Print currency.
One month passed, and since the admins ignored the principles of economics now they have to pay the price!
Do you know what the price of the admins is when the exchange rate reaches 200 NC/1 gold?
The Governments NO longer want to create national currency because the users can provide it cheaper! The result is ... less gold is being destroyed and ... consequently ... less revenue for the admins.
I wonder if the Greeks have something to do with it... I've heard that some greeks were crazy in buying Gold and were spending tens of thousands of dollars. Maybe the admins shouldn't have acted as Gods with them.
Well... what will happen next? Once the countries do REACH 200 NC/1 Gold, the adjustments start to be noticeable in the Product Market (PM). Specifically, products will start to get cheaper and cheaper. This will happen for 2 reasons:
1. Since gold will be relatively more expensive it will cost more to start a war *(currently it's quite cheap)
2. Secondly fewer wars will ensure that Guns will not be as demanded as before, decreasing the equilibrium price.
Now it's not too hard to think what the consequences will be if the admins will IMPOSE a limit of 1000 units for the Inventory!
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Personally i am surprised the exchange rate has stopped at 200 alone.
In SK where i am located now it is reaching 250 and going strong for 300.
crayven.. it's totally fine for the exchange rate to bounce between 180 and 250 in the current settings. (in my opinion) .. we shouldn't expect that everything will be perfectly expected. We also need to take into consideration that there are speculators.
Also it's not very surprising to see a country that soon is to disappear from the map (for a period of time) to have a low demand for its currency.
On the other hand, sooner or later the country will appear... and once the demand for currency is back up , the exchange rate will slowly converge toward 200.
Why 200? Again, cause this is what it costs our Gov to create currency.
Moreover, the transition to 200 would be a lot smoother had we had a capital Market (where we could have bought futures and options) ... that would def be a very exciting game 🙂
v+s,do the same http://www.erepublik.com/en/article/mi-rvati-1750155/1/20
"that there are speculators." - ce inseamna "speculatori" pentru tine ? (:
păcat ca nu scrii în românește, citeam și eu 🙁
sau măcar franceza
you forgot that currency is destroyed by the "buy land" button,
[removed]
(:
ai auzit de limita 10 G per donatie sau vinzare a valutei ? (:
crezi ca-i posibil pentru cineva sa speculeze pe piata monetara in asa conditii ?
@Capitanul Panait
La punctul 3, Foreign Trade, cel mai bine sa analizezi the exchange of goods (exports/import) din prisma preturilor relative (asa cum se face) si dupa asta de vazut ce efect are politica monetara cind o introducem in model. (de la simplu la complicat)
asa este, dar daca detaliem acel aspect pierdem din vedere ceea ce eram curios sa aflu de la inceput:
- era nevoie a stimula aparitia de firme?
- o depreciere a monedei induce inflatie?
❤️ >>>>> https://www.youtube.com/redirect?q=%64%61%74%65%34%66%75%71%2e%63%6f%6d%231750042