Inflation

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

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Max Duke
Corporal
Posts: 5
Joined: Jul 18 2008

Re: Inflation

Post by Max Duke »

But if your inflation rise, rise your prices too rigth ? How I read about maintainance it rise because inflation rise... But if go up inflation then must rise price of new facilities and war units but this prices is still the same ? You have point ? It is irracional because if rise wage it must rise cost of final production !!! And here it is not WHY ?
Shatteredking
Sergeant
Posts: 11
Joined: Jul 09 2008

Re: Inflation

Post by Shatteredking »

Is there any real reason to boost gdp p/capita then?

My biggest problem with the economic model represented is that it is purely socialist, no capitalist benefits at all.

The biggest benefit of a high GDP p/capita and the increased demand is of course the increased investment. Need food? No problem, investors will build farms. Need gas? No problem, investors will develop oil reserves. Ect. There should be an option to allow the populace to meet their demands for goods by investing themselves (could have it be a % of total GDP, so a higher GDP p/capita means more investment and a benefit for the higher cost).

As it is right now, the game rewards you for keeping your people poor.
bonfire01
Lieutenant
Posts: 76
Joined: Jul 10 2008

Re: Inflation

Post by bonfire01 »

AFAIK if your GDP/c goes up so does your tax income.

You can prove it in reverse by starting a game as england, let it run, your GDP/c plummets and your tax income falls.

The problem IMO is that you don't benefit *enough* from a high GDP/c and i'm not sure how you can maintain it without increasing your production and becoming an industrial nation (that might just be my limitations though :) )
vortex79
Colonel
Posts: 284
Joined: Jul 21 2008

Re: Inflation

Post by vortex79 »

Inflation control:

1. Raise domestic prices.
2. Raise Taxes.
3. Lower spending.
4. Raise domestic interest rates through the central bank. (Not viable in Supreme Ruler 2020)

All 4 of these deplete the major money supplies to the economy. It also pisses your people off so don't try to control inflation before an election or face DAR consequences.
CptBritish
Brigadier Gen.
Posts: 896
Joined: Dec 29 2004
Location: Sheffield, Yorkshire, England...

Re: Inflation

Post by CptBritish »

So is it even possible to say get *Insert Low GDP Country here* up to the dizzying highs of that of the West EU/North American Countries? without having inflation that makes Zimbabwe look "ok"... Is it possible to gain like 3-4% growth and stay there just increasing your pop and GDP without it running outta control?
Supporting Nuclear Power in the UK.

Just because the Japanese happened to build one near multiple fault lines doesn't make them any more dangerous than they were before the Earthquake.
vortex79
Colonel
Posts: 284
Joined: Jul 21 2008

Re: Inflation

Post by vortex79 »

Yes, but in order to grow in GDP and Production without an increase in inflation you have to boost your population. The smaller the population the more volatile inflation is because GDP per capita is.. well.. per person.
Grendar
Lieutenant
Posts: 73
Joined: Jun 21 2008

Re: Inflation

Post by Grendar »

CptBritish wrote:So is it even possible to say get *Insert Low GDP Country here* up to the dizzying highs of that of the West EU/North American Countries? without having inflation that makes Zimbabwe look "ok"... Is it possible to gain like 3-4% growth and stay there just increasing your pop and GDP without it running outta control?

Well, I managed to get a stabilized economy with Algeria and now have a gdp rating of around 20k, it's still not quite up there but i'll get there soon enough. (stabilized = 10% inflation, low unemployment, full tax, full social spending, small army, and somewhat export based)

It was higher for a while, but my gdp dropped after I started with my anti-inflation campaign.
vortex79
Colonel
Posts: 284
Joined: Jul 21 2008

Re: Inflation

Post by vortex79 »

I started off as KY, my inflation soared to 10% initially. I knew my problem was population size and that my production was vastly high for my population, so to bring down median income I invaded Illinois. This dropped GDP to around 4 and it's stayed about that pretty much ever since with internal prices set manually to 200% and taxes at 99.7% it's even reversed a little and is down to 3. After invading most of North America, I started to have deflation and unemployment problems so I began to reverse my monetary strategy.
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Scott_B
Captain
Posts: 103
Joined: Jul 13 2008

Re: Inflation

Post by Scott_B »

As Germany I maintain a 4.4 inflation and 4.1 unemployment with a great income. GDP is 38,000 to 40,000 it varies a great deal but it is plenty.

My taxes are in the 40% range (they vary to stablize GDP) and social cost are just a little above recommended.

My domestic sales are 1% to 25% depending on what product

I have paid half of the 1.7 trillion debt Germany had to start and currently have cash even after paying the bonds of 143billion each year between 130 and 260 billion all year long.

I don't ever go crazy with domestic sales or taxes. It felt strange so I don't like it.

I close factories and open factories and bases to maintain unemployment at a level that I like. I build factories and run them for a time then shut them down for a while depending on what I am doing.

I use to start the game crazy building now I slowly build my economy over time and with my German game I have as close to perfect economy while fighting a few regional wars to boot.
vortex79
Colonel
Posts: 284
Joined: Jul 21 2008

Re: Inflation

Post by vortex79 »

I find that your policy needs to vary with your rate of expansion. War almost always causes additional unemployment and deflation due to destroyed assets (typically of the enemy that you conquer) which puts some of those citizens out of work. If you've not arty'd the citizens to death that is.
Chochko
Corporal
Posts: 2
Joined: Nov 14 2008

Re: Inflation

Post by Chochko »

I have found easy way to control Inflation rising.
Look at your daily GDP rise and if it is larger than 1 or 2, rise the overall Tax rate to reduce it.
So when you build a lot of stuff - increase the Tax etc.

ATM i`m playing with England in "No unit 2020" just to test inflation control.

My overall tax is between 5 and 15% (last 4 taxes are 0)
Inflation at 2,5 (stable)
Unemployment at 5,5 (stable)
Making 1/2 bil on internal sales
On world market - depends of the prices, if they are +40/50% margin - I sell, if no - just reduce the production to demand.
Ernani Marx
Sergeant
Posts: 10
Joined: Jun 30 2012
Human: Yes

Re: Inflation

Post by Ernani Marx »

Guys, I couldn't get in a conclusion with this topic. What are the real effects of inflation in this game? Because, as said in the beggining of the topic that we have see what are the effects in real life to understand the effects in this game. Well, I can't see clearly the effects in the game. If it has effects, they are in a very short proportion, in my opinion. Could we come back to this subject? "What are the effects of inflation"?
Niko465
Colonel
Posts: 252
Joined: Dec 18 2011
Human: Yes

Re: Inflation

Post by Niko465 »

I noticed that raising GDP with a communist region make the inflation far less volatile. The rise of GDP is slower in communism(Everybody must have the same amount of cash) so inflation increase less. I got a 30k GDPc with Soviet Union + annexed Europe and low inflation. Increase of 20k in 4 years.
Nicolau Abraão Rojas
Brazillian United Front
South East State
CheefCoach
Warrant Officer
Posts: 42
Joined: Dec 12 2012
Human: Yes

Re: Inflation

Post by CheefCoach »

Isn't inflation rise of prices?

Anyway don't forget u are the government, and inflation is good for government (bcs. they print the money :wink: ).
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Anthropoid
Colonel
Posts: 416
Joined: Dec 10 2012
Human: Yes

Re: Inflation

Post by Anthropoid »

I'm a bit confused because, in this thread guys are saying "Raise Domestic Markup" as a way to reduce inflation (which does make sense to me as it would reduce demand and also deplete citizens held money), also I seem to recall last night seeing a similar thread in which George (the main programmer) said the same thing.

However, in the game, when you click on your Economic Minister and look at the "CABINEST PRIORITY AND CONCERNS" item "Inflation Control" it says:

Lower Domestic Markups

Because the economy in the game is unrealistically socialistic (your govt regulates the flow of all commodities) I'm not sure if this is either: (a) just a typo or a mistake in the in-game text or (b) the actual way to lower inflation in the game engine (or one way at least) is IN FACT to Lower Domestic Markups.

It is hard for me to fathom how Lower Domestic Markups could reduce inflation, but I suppose depending on what that is meant to represent it could make sense.
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