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Thread: Inflation: How Do You Control It?

  1. #1

    Inflation: How Do You Control It?

    I am running good now thanks to the patch. As for my economy (US, 1853), it is dealing with 17% inflation! Now, I read the news, I know 17% on inflation can't be good.

    I pressed "stop converting gold etc. into money" on the big production/commodities windows with the hope this would stem inflation. (It does say that converting gems and gold causes inflation, so wouldn't the opposite stem it?)

    I also invested in research with the foggy idea that spending money will limit inflation. I wonder whether the opposite is true. Money represents government holdings, and more in government coffers is less in the market, so should I tax like crazy??????

    I'm clueless,

    What do I do?

  2. #2
    As far as I am aware, the biggest cause for inflation is spending too much money per turn. You need a cash reserve for your factories and mines to spend making stuff.

    More info here:
    http://forum.paradoxplaza.com/forum/...ital-and-YOU-D
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  3. #3
    Lt. General von Sachsen's Avatar
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    Every so often if you have good NM you will get a "economic sunrise" event, which lowers inflation by one. Your best bet (though I forget if it is possible with the US) are decisions such as the coal/good/steel subsidies, which give state funds for the stuff and gives one less inflation as well.
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  4. #4
    Well, thanks to you guys my inflation is down from 17% to 13% in a few turns. Maintaining a lot of capital (versus spending too much of it) seems to have kicked in at least a % point already and the subsidies did about 3%. Most importantly, keeping a healthy margin between the capital spent and capital needs seems to prevent it from rising further.

    ,Yearbuilt

  5. #5
    Field Marshal Dalwin's Avatar
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    As said above, those mandates to subsidize various imports trade state money for lower inflation.

    On the flip side, if you maintain too low of a stockpile of private capital, the merchants will take short term loans to be able to complete their transactions for the turn. You get some message in the news queue about them raising prices to maintain their margin. I believe every 100 pounds they borrow drives inflation up by 1%. This is deceptive because if you look for loans, you may not see any since they manage to pay them off before the end of the turn in most cases.

  6. #6
    Factories need capital to run, if you run out of it they need to sell more goods which cause inflation. Capital reserves should fix it as said above.

  7. #7
    Corporal Marc420's Avatar
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    yeah, watch your private capital pool.

    I think what was getting me is that the turns costs are 'spent' before any new capital comes in. Thus, even though my overall levels were ok, I would dip below zero at some point in the turn's calcs, and then I'd get a bunch of messages about private capital being raised but at the cost of another point of inflation.

    In my USA game, I was up in double digit inflation before I figured it out. Now the 1% drop events are bringing it back down now that I don't accidently keep triggering more inflation.

    The UI isn't very friendly in figuring out what you've got left. Seems like the tool-tip on the B-screen works differently from the other displays. Ie, in some displays the expenditure is taken as soon as you do something that costs capital. But, on the B-screen it seems to keep the same total, but increase the numbers for this turns 'spending'. Makes it a bit hard to figure out what's going on.

    One thing the US player can do is to shut down cotton farms, tobbacco farms, coal mines and some other things a few turns in. You'll start building big stockpiles, and you'll find that in this trade market you can't sell any of this stuff. Remember to go look at those farms and their costs, and you'll see each one of those useless cotton farms is costing you capital every turn you leave it open.
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