[MoF] RECESSION! Economic Indicators of eCanada: Day 4,137
Day 4,137, 05:44
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Published in Canada 
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by
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by Canadian Ministry of Finance
This is the next week of the Economic Indicators of Canada. This will be a weekly article outlining some of the economic variables and how they are changing in eCanada. It looks at the CPI, Median Wage and WAM tax.
The base prices were taken on Day 4,081.
Consumer Price Index (CPI)
The basket of goods being looked at for the typical eCanadian citizen per week to calculate the CPI is: 84 Q7 weapons, 2100 Q2 food, and 1 Q1 house. This is based on each citizen using a Q1 house non-stop, and using 1,200 energy per day for fighting, always using a Q7 weapon to fight. The base prices will be the prices of each good on Day 4,081.
The Cost of the basket on the base day was: $14,797
The Cost of the basket on Day 4,137: $14,569.60
This makes a CPI of 98.46, which leads to an inflation rate in eCanada of -5.91% over the last 7 days.
This represents the first time since the beginning of data collection that the cost of the basket is less than what it was on Day 4,081.
Causes
The cost of Q2 food went down by 7 cents, the cost of housing went down 197, and the cost of Q7 weapons went down 6.79 per weapon.
WAM tax
The Work-As-Manager (WAM) tax on Day 4,130 was $18.39 per company.
On Day, 4,137, the WAM tax was $17.56. This is an decrease of 5.18%
Causes
This decrease was caused by an decrease in the average wage in eCanada.
At this point in time, the Ministry of Finance officially considers that eCanada is in a Recession. Over the course of the last few weeks, the inflation rate in eCanada has been negative. In the real world, a recession is considered a contraction of the economy for 6 months straight. Since erepublik is typically a faster paced game (I personally consider every month in erepublik to be equivalent of 4 years in the real world, since presidential elections happen every month, and in most democratic countries, elections happen every 4-5 years). Since erepublik is a faster paced game, it does not require six months to be a recession. But we have experienced 2 weeks of contractions in a row, with one week where the economy grew, and now 2 more weeks of contraction. Below is the list of inflation rates for each week since the beginning of data collection:
Day 4,081: Begin data collection. CPI = 100
Day 4,088: CPI = 107.82; Inflation = 7.82%
Day 4,095: CPI = 109.35; Inflation = 1.42%
Day 4,102: CPI = 116.59; Inflation = 6.63%
Day 4,109: CPI = 112.97; Inflation = -3.11%
Day 4,116: CPI = 104.50; Inflation = -7.50%
Day 4,123: CPI = 107.06; Inflation = 2.45%
Day 4,130: CPI = 104.64; Inflation = -2.26%
DAy 4,137: CPI = 98.46; Inflation = -5.91%
The next edition will be available on Tuesday March 26th, Day 4,144 of the New World.
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Comments
My sympathies to those players this affects.
why don't you come to ireland
we really appreciate people like you here
We're overdue for a tournament or something. We regularly produce more than is used on a daily basis, which is why prices are pretty stable and not climbing due to scarcity. When prices start to fall, some people just stockpile waiting for prices to rise again, which does tend to happen during tournaments.
With prices sliding, that means the imbalance has shifted some more towards overproduction (likely the same amount being produced but less people purchasing). That leads to undercutting when people can't or won't wait to sell, hoping they can sell more by being cheapest.
That said, with a global market, it's hard to be that far out of whack with the lowest prices so prices fall as low as the person least willing to hold.
It's also interesting to see the price of gold climbing. Not too long ago it was sub-500 and now it's approaching 600. I wonder if COs being turned off is affecting demand. Bottom line, people are selling more, for less, that in turn is worth less gold (which is potentially of some use?). I'm curious to see how far prices will fall. Eventually profits will evaporate but if it's just the price of WAMing, that might be not be for a while (though I should check to see if I'm still making a profit).