Inflation

Imports, Exports, Taxes & Social Spending... discuss these topics here.

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PyongYang
Colonel
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Re: Inflation

Post by PyongYang »

What?
CheefCoach
Warrant Officer
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Re: Inflation

Post by CheefCoach »

PyongYang wrote:What?
What what? When your GDP is raising it report back as inflation.
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Anthropoid
Colonel
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Re: Inflation

Post by Anthropoid »

I am 99% sure that RAISING (not lowering) your domestic markup is the main way to reduce inflation. The secondary method is to keep unemployment from getting too low (increase in labor costs).
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Ruges
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Re: Inflation

Post by Ruges »

Ignore inflation. Infact higher is better. This is becouse every nations dollar is tied togeather and the game does not really represent the poor.
CheefCoach
Warrant Officer
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Re: Inflation

Post by CheefCoach »

Anthropoid wrote:I am 99% sure that RAISING (not lowering) your domestic markup is the main way to reduce inflation. The secondary method is to keep unemployment from getting too low (increase in labor costs).
I am 60% sure opposite. Inflation in this game is measurement of economy growing. Technically inflation is raising of praises.
Mine humble opinion (and I am not economist) is that inflation in world is consequences of debt based economy, that is only way to feed banks with their interests. Whiteout that debts, government could keep amount of money close to amount of good and services flow.
galin56
Sergeant
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Joined: Mar 25 2013
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Re: Inflation

Post by galin56 »

In the game most important thing for your economic is production cost. Unemployment and inflation had a influence on the production cost. So if the production cost are much lower than market price who cares about inflation and the unemployment. When the production cost is getting too close to market price or even higher then try to lower it down with investment in infrastructure, deactivate less profitable factories and stop build new ones. Only researches until the inflation start to fall and the production cost going down again.
May be that is the answer of yout question.
CheefCoach
Warrant Officer
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Re: Inflation

Post by CheefCoach »

Inflation has, for unemployment I didn't noticed. Infrastructure level reduce produces cost dramatically, more infrastructure level better ( u can go over 200%). Maybe supply level have important too, so combine airports and supply depots.
georgios
Brigadier Gen.
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Re: Inflation

Post by georgios »

Inflation rate can't be direktly edited in cvp file. It can be edited if we edit unemployment rate. But even if we set 100% unemployment meaning negative inflation, unemployment and inflation start to change towards their initial value without building any industries.

I believe that inflation shows the rate of gdpc change.
unemployment is a rate that shows what opportunities for further gdpc increase exist.
lorddrakenwode
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Re: Inflation

Post by lorddrakenwode »

Has anyone actually conclusively determined the effects of inflation? I've played a number of different circumstances involving high inflation numbers, some quite extreme (Ethiopia with inflation on the order of 70%), and I have yet to find any discernible effect of inflation itself. In cases of inflation caused by rapid GDP/c growth, the effects (high Domestic Production costs, but high Domestic Approval Rate) are more the result of the GDP/c growth. In cases of inflation caused by high Domestic Markups, the effects (LOWER Domestic Production costs, lower Domestic Approval Rate) are more the result of high Domestic Markups. I have yet to do anything like a focused assessment of these mechanisms, and of course it is generally difficult to isolate any single variable as being responsible for changes observed. However, I have done a cursory examination, and never seen any single effect leaping off the page as being as a result of even extremely high inflation.
georgios
Brigadier Gen.
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Re: Inflation

Post by georgios »

In reality it is very difficult, practical impossible to control inflation.
There are two cases:

1) you have built product sufficiency and you don't bother if you can sell cheap to gain money to buy other products
2) you don't have sufficiency and you go bankrupt.

So it is a game time trap, you must hurry to win before you fall in the "liquidity trap".
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