War Module Update: Economic Results
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by Kishvier
So if you haven't noticed, the war module was updated recently and this will completely change how battles are fought, and more importantly, our currently deceased economy.
Now at first, you might think that hey, this won't help the economy it was an update to the war module, but then you would be wrong and obviously didn't read this article! We must remember that wars are what drive the economy in this game, the reason we harvest weapon raw materials, and then build weapons. These wars are fought for political reasons and for pride of having the 'most powerful country', but wars are also fought in order to improve our domestic market productivity, to give our companies the highest bonus possible, obtain greater productivity, that leads back to producing more weapons for our wars, and as no country will ever truly 'win', we continue this never ending quest for military domination via a quest to obtain a more and more powerful economy.
Now enough of this babbling, all of us understand that the game is cyclical, but lets get into the specifics of how this will affect the economy.
First of all, we have to examine the results of the new BH rules. There is now a BH medal given to one person on each of the fighting classes, which means there will be more gold put into the economy than before. This will undoubtedly lower the value of gold as the supply will grow at a faster rate than before, and as many of us know, this will be a relief to the economy.
Now this decreased value of gold will cause CC to gain relative value, making everything on the domestic market more valuable. In addition to this, the offer for more BH medals means more people will fight, more often. This will lead to a greater pressure on the markets to produce more weapons and food, leading to their prices increasing as the demand skyrockets.
Moving onward, this new focus on fighting will lead to less health spent on working, leading to a decrease in supplies. This, in my opinion, will have the least affect on the economy, but one must also consider the fact that people are classified by level, and leveling up faster means you will not have as many fights and strength as a similar level character, who has worked far less. For those that don't know, you receive experience for every time one works.
My advice for the future? Buy stuff now, and sell your gold if you plan to, in the future. Prices will rise on the domestic market as well as CC gaining value, and gold will reduce in value.
So I hope you folks learned something, or I at least got you thinking about our economy in a new way!
-Kishi
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I hope you folks learned something, or I at least got you thinking about our economy in a new way!
When the Admins introduced the True Patriot medal and the 5 gold that went with it, the price of gold still went up. Gold was around 1920 when the TP medal was introduced. Its 2400 now. Since everyone can earn a TP medal (vs. only a few getting a BH medal) and a TP is worth 5 gold (vs.2,3, 4, or 5 gold for a BH), I don't think the extra gold in the game will mean diddly to gold prices.
The price of gold in this game does not follow the laws of supply & demand.
Good read
The laws of supply/demand are very hard not to follow in a market system, the only thing I can think of is that the admins are manipulating the gold market for some odd reason (it can't be that they like the price of gold to be very high since then buying and spending gold is useless as it is now)
Who knows whats going on, but so far the influx of more gold into the game from the new military module (max of 160 gold per war to max of 420 gold per war now) hasn't done anything that makes sense
I believe that the offer for more gold will put more of a load on the market for high quality weapons, which will level out the relative values of gold and CC. I'm not saying that it will fix the economy and put us into an economic gold era, but I'm saying that it will help a little, at the very least. We'll have to see.
F4uc0n wrote 5 minutes ago
Less click on the "Fight" button also means less bazooka parts ?
I knew the admins had something in mind...
good read x2
Wow...didn't realize any of those econ ramifications...very smart guy, you are!
@sm00t: I don't expect a huge change due to the added gold, I feel the additional fighting and reduced work levels will have the greatest magnitude of change. Honestly, I cannot guarantee I am correct, the supply and consumption of gold isn't linear by any means, people might buy a million gold one week and spend it all, and the next buy a hundred million but sit on it all. I can predict the market changes fairly well, but I cannot predict the magnitude of the changes. Such is life. :/
Yes the admins do want to make gold expensive to buy with CC. This will encourage gold purchases with RL money and also increases the value to the players who do buy gold with RL money.
If gold were to become less expensive in-game, then it would be far to easy for players to simply work their land to make enough CC to buy gold. The sole purpose of this game for the developers and investors is to make money. I don't expect to see gold prices do anything but continue to climb higher.
You can't artificially change the value of gold, the value of it is what people are willing to pay for it. If the value of gold falls, the admins will most likely make a sink for CC so that the relative value doesn't change a great deal.