Deflation?

doktor · 18-01-2010, 17:02

Is deflation possible? My inflation rate is at -.01. Will prices ever fall? Will prices ever fall below the starting value?

Dave
San Diego, CA
Home of the World's Busiest Radar Approach Control

metaphonia · 18-01-2010, 17:08

If I understand correctly your question,inflation has 0 as lowest value.

mastervlad · 18-01-2010, 18:13

Deflection is possible, using National Bank, being centralized, having master of mint as adviser and constructing a building (I don't remember now its name), and maybe from some events.
However, you can't have less then 0% inflation.

If you have 10% inflation, everything will be 10% more costly. Deflection is possible, so you can come back down to 0%, or do free mint (minting as much as you can, by balancing the inflation given by the minting process and the deflection, given by the above mentioned so that the inflation will neither rise, nor fall).

benkern · 18-01-2010, 18:22

Quote:

Originally Posted by doktor

Is deflation possible? My inflation rate is at -.01. Will prices ever fall? Will prices ever fall below the starting value?

Dave
San Diego, CA
Home of the World's Busiest Radar Approach Control

No, it won't.

Inflation in the game is a very poor representation of what real world economists would call inflation, and as such it would be unrealistic to allow 'deflation' to exist if its only effect was to bring prices down to ridiculously low levels.

jdrou · 18-01-2010, 20:21

Costs can never fall below the base value as a result of inflation/deflation. Given the game's definition of 'inflation' is not the same as it is usually used in the real world though you could say that you do experience real-world deflation in the sense that costs can drop below their current value (until they reach the base value). If you wanted to you could theoretically reduce all the game's base costs significantly and just start every country with a large amount of 'inflation' to compensate.

Anthropoid · 18-01-2010, 20:37

So here is a related question: is inflation cumulative and compounding? Or do costs just vary between base cost (at 0% inflation) and the inflated cost?

Lets say my inflation from 1399 to 1499 is 1%, and then I get it back down to 0% as of Jan 1 1499, and when that happens all my techs are at 15.

Does my cost on Jan 1 go back to the base cost for tech levels 15, or does it go back to the base plus whatever accumulated and compounded amount 100 years at 1% would amount to?

jalapen0 · 18-01-2010, 20:42

I didn't think it compounded?

Almonds · 18-01-2010, 20:43

Simply put, the game's "inflation" is simply a surcharge on the base building cost which is defined in the files. There is no accumulation or compounding. When you go back to zero inflation you will simply pay the base cost.

18-01-2010, 17:02	#1
doktor Registered User Join Date: Dec 2003 Posts: 125	Deflation? Is deflation possible? My inflation rate is at -.01. Will prices ever fall? Will prices ever fall below the starting value? Dave San Diego, CA Home of the World's Busiest Radar Approach Control

18-01-2010, 17:08	#2
metaphonia Second Lieutenant Join Date: Dec 2008 Posts: 165	If I understand correctly your question,inflation has 0 as lowest value. __________________ Tired of all checksum trouble in your MP games?Try EU3Cache

18-01-2010, 18:13	#3
mastervlad Captain Join Date: Mar 2007 Location: Romania, EU Posts: 444	Deflection is possible, using National Bank, being centralized, having master of mint as adviser and constructing a building (I don't remember now its name), and maybe from some events. However, you can't have less then 0% inflation. If you have 10% inflation, everything will be 10% more costly. Deflection is possible, so you can come back down to 0%, or do free mint (minting as much as you can, by balancing the inflation given by the minting process and the deflection, given by the above mentioned so that the inflation will neither rise, nor fall). __________________ "Create like a god, command like a king, work like a slave." Constantin Brancusi

18-01-2010, 20:21	#5
jdrou Field Marshal Join Date: Jun 2002 Location: Michigan, USA Posts: 15,265	Costs can never fall below the base value as a result of inflation/deflation. Given the game's definition of 'inflation' is not the same as it is usually used in the real world though you could say that you do experience real-world deflation in the sense that costs can drop below their current value (until they reach the base value). If you wanted to you could theoretically reduce all the game's base costs significantly and just start every country with a large amount of 'inflation' to compensate. __________________ "The trouble with fighting for human freedom is that one spends most of one's time defending scoundrels. For it is against scoundrels that oppressive laws are first aimed, and oppression must be stopped at the beginning if it is to be stopped at all." --H. L. Mencken Victoria: Revolutions 2.01 (+new VIPR 0.3) HoI2 Anthology w/Mod34 EU3 Heir to the Throne beta patch 4.1b Download the Fix-it-Yourself Pack for HoI 1.06c (updated 11/14/05) Download the Unofficial hotfix for EU3 4.1b 4/29 beta

18-01-2010, 20:37	#6
Anthropoid Major Join Date: Sep 2008 Location: New England Posts: 507	So here is a related question: is inflation cumulative and compounding? Or do costs just vary between base cost (at 0% inflation) and the inflated cost? Lets say my inflation from 1399 to 1499 is 1%, and then I get it back down to 0% as of Jan 1 1499, and when that happens all my techs are at 15. Does my cost on Jan 1 go back to the base cost for tech levels 15, or does it go back to the base plus whatever accumulated and compounded amount 100 years at 1% would amount to? __________________ "The greatest joy a man can know is to conquer his enemies and drive them before him. To ride their horses and take away their possessions. To see the faces of those who were dear to them bedewed with tears, and to clasp their wives and daughters in his arms." Genghis Khan

18-01-2010, 20:42	#7
jalapen0 Major Join Date: Feb 2007 Posts: 645	I didn't think it compounded?

18-01-2010, 20:43	#8
Almonds Second Lieutenant Join Date: Dec 2009 Posts: 146	Simply put, the game's "inflation" is simply a surcharge on the base building cost which is defined in the files. There is no accumulation or compounding. When you go back to zero inflation you will simply pay the base cost.