[SINERGIA] GLOBAL ECONOMIC CRISIS || Economic Collapse?

Day 2,580, 12:13 • Published in Pakistan Netherlands • by pamadapa


Writer's Note: This newspaper article and its content is a personal appreciation of the game, many can agree or not. My purpose is to guide the newer players or those who do not understand some issues of Economy. Would be eager to read what you think, and who do you think can happen. Having made this clarification, I hope you find it useful.




Cordial Greetings: that the newspaper article seems long, but worth a detailed analysis and explanation which can be helpful to you. Maybe you observe changes in the value of Gold and more recently in the prices of some goods in the marketplace. This originates from 2 advertisements taken by the eRepublik Admins, some important facts that will be implemented soon, and others already running , are the following…



Like any news that has to do with the Economic Module produces different reactions and speculation with a direct impact on the eWorld Economy and therefore for citizens. This should be analyzed separately, so we see that the first news produced changes in the price of Gold and the second news, changes in the price of the goods

1) Why are changes in the price of Gold?
2) Why are changes in the price of goods?
FINAL ANALYSIS AND REVIEW


1) Why are changes in the price of Gold?

The Monetary Market basically is regulated by the "famous" supply and demand.
Demand is the amount of some good that people want and are able to buy.
Supply is the amount of some good that the seller are willing and able to puts on sale
Therefore the supply and demand interact fixing prices and amount of “something” (Gold or goods) that a citizen owns or produces


In the graph we can see what was taking place a few days ago and as after news of "medals changes" and because of speculation, the price of Gold rises sharply, then down trying to approach the previous values (a notorious period volatility), but again the distrust and speculation, the Gold rises slightly but placing approximately an intermediate value between the maximum and the price of previous days

If you have read my explanation of how it is regulated market (supply and demand) and if you still do not understand why these news produced this variations in the price of Gold, I will try to explain to you so easily what could happen or is expected to happen:

Decreased supply of gold & Increased demand of gold: the citizen will earn less gold medals so have less gold to sell (that's less gold in the Monetary Market), as citizens earn less gold from the medals, gold increased demand because it is scarce
Increased supply of CC & Decreased demand of CC: there will be more CC in circulation, inflation and devaluation, citizens are willing to pay higher prices to buy gold, will be less gold for sale on the Monetary Market. The Citizens will win CC to win the mentioned medals not have to sell gold (or at least not so much as before)



2) Why are changes in the price of goods?

The second news is a similar action (to was I explained in Gold) so the result is an immediate reaction naturally in the marketplace. This is due to possible speculation but also for a logical matter of increasing demand to satisfy citizens' needs (food and weapons)
explaining it to you more easily, The damage from weapons and energy recovery you get from food is reduced, so you need more weapons and food to accomplish the same thing you did before (demand increases, thereby increasing the price).
In my view, is not a solution to the problem neither a help that make us Admins ... quite the opposite


FINAL ANALYSIS AND REVIEW

Something that can not be hidden, is the immense economic crisis spreading around the eWorld. Become an entrepreneur (having factories and produce) is now not very profitable and is risky.
To explain this phenomenon a way to fix the Administrators explained that the problem is the "global overproduction". Therefore, a brief attempt to correct the market, that change is imposed on the eDay 2579 and that will happen in eDay 2610
But if the "goal" (according Admins Said) is to help new players, then the new players need Gold for training ground upgrades, industries to make money, or anything else.
The amount of "printed CC" could Increase will drastically after a few months if they do not massive currency drains. The Economy Module of this game needs to be Completely overhauled, it's too stagnant.

The solution that currently seem to find the Admins is: produce more money (CC) and you can buy more. In principle it is great, the crisis be solved by printing money and allocated among citizens, everything would work again and everyone happy. Unfortunately the Economy do not work this way (in a game or in real life).
In Economy, it is inflation or hyperinflation (very high inflation) out of control, the currency loses its real value, excessive growth of money supply and the population has an obvious reduction its monetary capacity. That is, a cycle without tendency to equilibrium.



As you might have seen already, the admins asked for our feedback on their new idea; Resource Shuffle, which basically means reorganization of the resources of the New World.
To be honest, obviously what eRepublik Managers seek is people bought more gold (with real money), but what they do not realize is that if the game does not offer fun and reliability situations, the end result will obtain a situation opposite. This is notable because the amount of people in the world (players) decreased

But we are in an economic collapse? the eWorld's end is near?

The answer is: Yes, we have an economic crisis (long ago it is happening). I presume Gold prices could remain stable in the values it now, with downward trend in times of calm and tende rise in times of "Plato Promotions".
One characteristic is that, whenever citizens are accustomed to economic crises and drastic changes in rules of the game and therefore tend to "accomodate us" to situations that place us Admins, so that the world will continue spinning … anyway, time will tell us the truth.-


Thank you if you have read this article, I apologize if there are errors in the article, you know that my English is not good, I hope you at least understand the concept
Please, remember eRep. is just a game and we should not mix it with real life, we are here for fun, then… let do it and enjoy.





Support the effort...
Vote and comment is appreciated