An Introduction/ Deflation
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by RockFan
Alright. I've decided to enter the paper-writing game, and it feels pretty awesome right now. I know that the headaches and writing blocks are soon to follow; I'll just have to deal with that.
I'll be writing about various parts of the eWorld that seem to draw the most attention, or just my own mainly. I'll write whenever I have time or the most inspiration, so don't expect a regular routine.
First subject up for discussion is the recent inevitable trend of deflation of our currency system. I would encourage you all to discuss or correct me in the comments below. I'll just give my own views and evaluation.
People hate deflation. Prices on our goods go down, and it seems that we can never have enough money to buy the things that we want or need. Since just about everyone in this game is an entrepreneur in addition to being a worker, things become especially difficult for those who depend on the 3 Grain Farms and 1 Q1 Food Factory for a living (in addition to regular work).
People hate deflation, but it is my belief that people cause deflation anyway, although not knowingly. When an insightful food/RM buyer sees the price go up, s/he may say to him/herself, "Why should I buy now? I'll just wait for the price to turn around and begin to decline again, then buy." This is where the inevitable chaos begins. In our society, the economy thrives when people sell and people buy. If you don't buy (with the hopes of saving a surplus of currency to buy at a later date with a lower price), you are actually CONTRIBUTING to deflation! Because you didn't contribute to the total demand, the demand of that good falls. The supply is now greater than the demand, which results in a lowering of prices and profits for business owners. These people lower wages to keep up with the trend, and of course we find ourselves in an economic slump. The problem is that everyone expects a certain trend, without realizing their part in that trend.
I would compare the economy to a wave in the ocean (or any wave really). The wave has its crests and troughs. It travels at a steady rate and rarely differs from that speed. One important thing about ocean waves is that they are in the ocean, a great body of water. This is obvious, but did you ever think about the ocean depending on the land under it for support? Yes, there is land under the sea supporting it. In the event of an earthquake or some great seismic event, the ocean can lose some of its support. This causes a change in its water level. See where I'm going? If the basic infrastructure of our economy (that is, the sellers and buyers) don't play their part, we can't make a smooth wave out of pure chaos. End rant.
Ok, that was my first attempt at a competent article. Tell me what you all think. Also..............
EZC FTW!!!
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Comments
o7 mate...EZC FTW Sub + Vote 😃
s+v, its a good rant 😉
Voted.
This is true but Admins are the ones who control market prices with the bot. There are many variables, for example:
1) Productivity formula must change in order to have less supply, you could change the formula or you could reintroduce into the game working skill. This way profit could return to low Q companies.
2) Bot: originally it was introduced to elimate this surplus of products but I've been noticing that Admins are the true responsibles of deflating our econony, for example in the last 2 months or so they have lowered Raw Materials Bot Price from 0.33 to 0.29 to 0.26 to 0.22 to 0.18 which is the current price and yet gold prices don't go down in fact it's value is increasing. there the only conclusion is they want people to buy more gold, therefore we don't have much control on the market.
they want people to spend real money to buy gold so they can sell it on the monetary market.
technically, the UCU is being inflated, but I can see where you're coming from
I'm a rookie writer, so constructive criticism is welcome. I do realize that I need pictures for effect.
You know, supermaqp up top is dead on. The admins are screwing with the economy in ways never seen before. The creation of the bot was supposed to stabilize the economy, but all its done is f it up even more, by driving prices way down on goods, and way up on gold. In my opinion I'd rather see a bit of inflation than deflation. Part of the reason they are using the bots so heavily is to buy up gold, therefore making it nearly impossible to get in the first place without spending real money. Remember to the admins, it's a way of making money, not just a game like it is for the rest of us.
http://www.erepublik.com/en/article/the-market-and-deflation-2014883/1/20
it is a very well written article with a great insight into the real world economy. sadly in erep we have a very smal economy lacking in deversity subject to the constant interference of our god 'the admin'. the end result is that we have very little control over anything@
my biggest fear is that sharholder greed may end up destrouing this game 🙁
Agree with above comments. Very well written. Nice to see such clear and sparkly prose. Please keep writing.
As for the economy and deflation, the primary "invisible hand" in this case is definitely that of our not-so-hidden god, Plato.
v+s
deflation will end with raw at 0.01 , barring extension of decimal allowed in the Market
Couldn't to encourage demand the admin's create a option to loan money? Each country sets the interest it loans money at, and to ensure people don't multi account and trade over the money to avoid having to pay it back... the player can't trade until the loan is paid.