Join the new world

Good article 🙂

This Inflation rate will become very handy

Cheers. Helps to keep track of it.

Nice... 🙂

The website is white..

Anyways how do you join the competition.
Someone send me a PM with all the info..Thanks

I deserve a T-shirt.

Nice article 😛

I\'m an author and began to contribute wiki. Can an admin inform us if there is anything else we should do to enter the competition, please?

Impressive Sweden, Neat event.

How bout the deflation?

@king waseem: You should request for an account here http://wiki.erepublik.com/index.php/Special:RequestAccount
and you can read more here: http://wiki.erepublik.com/index.php/Help:Contents
Also remember to use your Citizen name in order to be easy for us to track your work

@Kratos: No, simply contribute to the wiki and we will take into consideration the top contributors (quantity and quality)

Good Job Thanks For Everything

Could you tell us how inflation rates are computed? I don\'t believe there is positive inflation in Spain...

Thanks for explaning!Good Job!

Cristesco please check your messages ( here in erepublik).

Maltus: \'It is calculated based on the rise of prices of all goods sold from the marketplace during the last seven days. \'

I don\'t like the The Swedish Nobel Prize in RL, so... I expect more from this one 😉

http://www.erepublik.com/article-394921.html

😃

I like The Swedish Nobel Prize..It\'s a good idea!

hi just a question:are you sure not to have included gdp growth in the inflaction rate?

I\'m not convinced by these rates as most economies, by my reckoning, are experiencing deflation at the moment due to return of the dreaded oversupply...

@maltus \"Could you tell us how inflation rates are computed? I don\'t believe there is positive inflation in Spain...\"

It should be based on changes in the RER. An explanation of how the RER is caluclated can be found here:
http://www.erepublik.com/article-101021.html

I really should put this in the wiki...

If people want more long term inflation changes subscribe to my newspaper:
http://www.erepublik.com/company-1380.html

I\'ve been on holiday but I\'m back now and I\'ll be writing a new Economic League Table some time this week.

The most important stat we are missing in Erepublik is the AER. The Average Exchange Rate. ie the average value at which the currency is exchanged to Gold.

The RER should also be also be renamed as the CPI (Consumer Price Index) as it is not actually a \"Recommended Exchange Rate\" at all.

Anyother item in my wishlist is an inflation rate PER INDUSTRY! that would be great 🙂

Nice article,
Regards,
President of iran

thank you

@kaleb: I definitely agree on introducing average exchange rate, and inflation per industry...

anyway I\'m puzzled on some thing, i will try to explain

first: I don\'t think I’d be a great idea calculate inflation on currency changes since countries has more or less 1% exp\\imp

secon😛 you posted average price formula and you say inflation is based on that, but I don’t think it would be a good way to do that since it doesn’t count changes in the purchase mix; I’ll make one example to explain me better:

figure that ten people buy 10 unit of food q1 to live, next day 5 of this people decide to buy q2 food(on English market at the moment q1 food cost 0.28 gbp,q2 0.55gb)
ap index for the first day is🙁0.28*10)/(1*1*10)=0.28
ap second day is🙁0.28*5+0.55*5)/(1*1*5+1*2*5)=0.27.6

ap index has changed even if price are the same(of course it has changed purchase mix),I think it would be a good approximation if purchase mix was \'stable\', but here is not since there are lot of people who abandon the game, and more ones who start, so it\'s easy players switch their purchase

thir😛 if you count that value using gold it would incorporate changes in currency value, that may influence inflation but are not inflation

This is a good article, Grats 🙂

Cinc, Misho, Flammbar, Carradine and BetaMjau had a meeting in Stockholm a while ago. It will definetely be followed up - hope we can see erep.com official presence in Sweden in the future!

@Kaleb:
I agree on the deflation part. The value of GOLD is not constant, but it should change rather slow. Taking that as an indicator eRepublik is seriously deflating at the moment.
Especially Sweden contributes to that (-11% value of GOLD against SEK over last week), but also countries like Canada (-24😵, Spain (-17😵, Indonesia (-24😵 and the USA (-9😵.

Thank you for adding in Inflation rates. Prices have been getting dangerously low lately in important areas (food and housing).

At least in Indonesia anyway.

would like to have some feedback from admins on these comments and questions..

@Napoleone: thanks for your replies

\"first: I don\'t think I’d be a great idea calculate inflation on currency changes since countries has more or less 1% exp\\imp\"

I wasn\'t suggesting the AER be used to calculate inflation, but it should be used to calculate a nation\'s exports and imports in the GDP forumla. At the moment this is calcuated on the RER which is wrong.

And you\'re absolutely right about the price index. As even if prices stay the same, as long as there is a price differential between Q levels the price index can change if the \'purchase mix\' changes. But this still gives a decent, although imperfect, index of price changes and is a lot easier to calculate.

re your third point: Currency changes definately do influence inflation, it\'s no coincidence that the 3 countries with monster inflation are also the countries with monster currency depreciation (ie Germany, Greece and to a lesser extent: Portugal).

The global deflation we are seeing is actually worse that having a bit of global inflation. High inflation is a problem but in general inflation is better than deflation as companies will compete with each other to increase their workforce and the competition will push salaries up in line with inflation.

But when you have deflation wages are much harder to adjust as they are typically \'sticky downwards\' meaning it\'s harder for employers to reduce wages (they often don\'t even realise this is what they need to do). GMs will drop prices as this is very easy to do and to see but having to change everyone\'s wages is quite tedious, especially if you want to message all your employees to explain why!

We had major deflation prior to the nerfing of hospitals and the war mod and then an inflationary economy after that.

The main problem we have is that we NEED wars in Erepublik just to keep the global economy balanced. The economy should be balanced without wars in my opinion and wars should be something that puts the economy in a mess rather than making it more stable!

sorry I\'m typing to much but I should also say that many of these problems will be fixed in V1 but there are a few easy \'tweaks\' I\'d like to see implemented right now just to keep things better balanced in the meantime...

hi kaleb, at the moment i\'m not able to exactly apreciate the link between inflaction and currency change, i mean: of course big value depreciation make lot of inflation but ,since there are little amuont of import\\exportand and lot of counties are protectionist, i may not say how much it would be on small changes

for the inflation index we could do as do everyones, take a fixed amuont of goods sold and see their prices(may be bettere if based on a % of the work force, in oder not to count the large amount of fakes and to consider countries dimension..); more, I am not convinced they have not counted gdp growth on inflation calculation..for example I consider a gdp variation the changes on \'purchase mix\', if one switch from buing one gift q1 to one q2 it would be the same that buing two q1(so gdp grow)

i definetely agree with you about deflation/inflation and the balance of economy.on this last point i think economy is unbalanced because lot of peole waste their money got by \'invites\',(for example creating company that destroy their richness and the competitor\'s one..).according to this point of view war create lot of expenditure, so lot of inflation and company do not bankrupt.
when/if they will be quited i think we will se a more balanced economy

the impact of depreciation on inflation is not mainly through export/import but from the fact that people have more money to spend if they convert their Gold (from invites for example) into local currency. Depreciation also makes it harder for foreign companies to export to the country meaning less competition = higher prices.

We could use a fixed \'bundle of goods\' to determine the price index, you\'re right, a set quantity of each product could work. I\'ll have a think about how that could be done...

well..in case you manage to have access to datas, you may see the total amount of good sold (per quality, per industry, ecc)

You may get a statistic report on that (mean: average amount of good sold per day), for example if you see that in Italy are sold per day (you may consider the last month for it):
Foo😛 400q1+200q+70q3+20q4
Gift: 234q1+156q2+60q3+8q4

Than you take the value of the cheapest first 400q1 (expressed on Italian currency), the value of the first 200q2 sold and so on..

Food (P)rice index time1= 400 Priceq1(t1)+200 Pq2(t1)+ 70 Pq3(t1) + 20 Pq3(t1) 😶(t1)
Food (P)rice index time2= 400 Pq1(t2)+200 Pq2(t2)+ 70 Pq3(t2) + 20 Pq3(t2) 😶(t2)

Inflation rate= [x (t2)-x (t1)]/x (t1)

In case, if you wish,you may get an average price for each quality and industry (e.g.: sum of price of the first 400 food sold/400) but when you calculate inflation you need to ponder (don’t know the English name) average price with quantity(so moltiplicate each average price for the average quantity sold (that you got in the statistic before)

since every day there aren\'t sold the same amount of good you will take a % of the average quantity sold, or you can choose the secon method

hope not having sad idiot things...😃

Hi in Spain we hahe founded the INE( nacional institute of stadistics....and we arr beginingworking thats problems) if kaleb and napoleone wants to pass to the newspape of maltus , ..
his newspaper is the oficial press of iNE until we have an so
And i was thinking invite kaleb to contribuite whith his works....is he , or ahother economist wants...the problem is taha i am looking for a transleitor for his works...

😉

I am working in exhangues taxes an phillips curve, maltus in inflaction, luisjo in exchangue os gold..anothers in demografics, politics etc...
We need people ...
Thanks and excuse for mi bad translate...

Ah¿¿
And i am working in recopilations of clasicals economics from beginers ....now i hev write about quesnay.....

Nice ...

I need a job in weapons...somewhere in Turkey....I am in Heraklion if anyone can help.

good read

In Brazil the level prices decreased : Inflation: -19.02%

wajib!

Good article. Hopefully our leaders will do what is in their power to minimize inflation.

Turkey is having a crazy inflation rate right now. Entry level salaries at 10,000

Kezmu, the current president of eSpain, Sato of the PMV, thinks inflation is the solution to his mismanagement problems... and for enterprises... 😛

Hopefully he will be sacked very soon. He had been banned before, charged with multiaccount, by the way.

boo eInflation!

burn the money!

I wonder if we should call it \"MudFlation\"?

good news🙂