Current Economics, and What To Expect Next

Day 1,266, 16:09 Published in Switzerland Switzerland by Kishvier

So, we've been invaded and occupied like I said we would in my last article, sit tight and wait for instructions. We'll get out of this 'pickle' if you will. Here I'd like to take my breakdown of the effect on the Swiss economy, although it doesn't all effect the economy directly at this point, we can see some effects of warfare on a country.



First of all, lets take a look at the monetary market status, concerning the strength of the CHF. Obviously, when the country was taken over, you could expect the exchange rate to react badly. For instance, before FYROM declared Switzerland their NE (Natural Enemy) the general exchange rate of CHF's for Gold was 299.98 CHF to 1.00 Gold. This wasn't too bad of a situation, our money had more value than most countries, although the state of us making it was not on par (Look at my earlier article, located here to see the breakdown between the Swiss and Slovenian pay rates: http://www.erepublik.com/en/article/wartime-economics-with-an-interesting-observation-1751266/1/20), but after a matter of hours after the proposal, the exchange rate rose, and has peaked for the moment at 420 CHF for 1.00 Gold. This means a rate of 29% inflation over the course of a mere two days, which isn't good for anyone with a large amount of CHF's. Furthermore, it reflects the current state of the Swiss economy, which although stagnant at the moment, will not be in a good situation when we regain independence (I assume this will happen, that is).



Furthermore, we can look at the price shifts from before the NE proposal to the current time. As a note, the prices for current sales is just to illustrate that the economy went in a bad direction, obviously they are stagnant and the market is frozen at the moment, because Switzerland is completely occupied at the moment. Pretty much everything has risen in price, from pre-declaration of day 1264, to day 1266, Q1 Moving tickets were the only product to not really increase in price that can be seen as a leading indicator, they rose roughly 0.01 CHF (+0😵, Q5 Weapons rose 10.68 CHF (+18😵, Q1 Weapons rose 2.28 CHF (+32😵, Iron rose 0.07 CHF (+13😵, Grain rose 0.04 CHF (+8😵, and Q1 Food rose 0.05 CHF (+5😵.



Although not catastrophic, these don't show good signs, when we get back on the map we can expect to see a violent drop in cost, due to back-logged supplies, but then expect inflation to take off at a steady rate, as the faith in our money and country runs away from us. People will continue to rid themselves of their CHF's if at all possible, and as a result prices will inflate accordingly, although it may not form an epic landslide, making our money positively worthless in a matter of minutes.



-Kishiver
A Swiss citizen currently suffering from the effects of Novocaine, and braces. Yuck. :{P