As we all know there was horrible inflation in the 16th century due to all the gold and silver being imported into Europe from the Americas. Is this going to be factored into the game at all? 
16th century European massive inflation?
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If it's happening, yes. If it isn't, no. That's one of the big differences between EU2 and EU3.
MrT said:If it's happening, yes. If it isn't, no. That's one of the big differences between EU2 and EU3.
I don't quite understand that. If massive inflation was occurring in the whole of Europe due to the colonization of the americas, how can this event not happen? I suppose if no one ever colonizes. But, it's a given people will colonize right? So is there an event that increases inflation for Europe as a whole if people are colonizing? This would be pretty neat.
It's not the colonization per se who created the inflation but the intensive exploitation of the gold that is there.
... and the monetary policies of the European countries, the increase in urban population/rural population proportion...
And if Spain imports gold to Europe, why should Wallachia be strucken with horrible inflation?
Didn't it depend where you were and your economic ties to the New World how much inflation occured? Spain suffered from inflation a great deal, but I find it hard to believe it had as much effect on Poland or Ragusa. Since events are not as nation specific, EU3's engine should handle this well enough by just giving inflation to whoever messes with the Incas and perhaps countries that contribute to their CoTs, if that's possible... hmm, perhaps that's a trigger worth thinking about.
EvilSanta said:
Because Wallachian goods fetch more gold in Spain than in Wallachia, Wallachian widgets flow to Spain and Spanish gold flows to Wallachia creating on a smaller scale the inflationary pressure that the influx of gold from the Spanish colonies caused in Spain. In the pre-central-bank era, inflation was tough to firewall.
Of course, inflation is 10x worse in the central bank era than it ever was back then.EUnderhill said:
The raw numbers might be higher, but the ability to cope largely greater on an international scale. What happens in Zimbabwe stays in Zimbabwe thanks to currency traders who can operate knowing that most nations will run the money presses responsibly - unlike during an era where specie needed to be examined individually for evidence of debasement.Inoxx said:
Rex Francorum said:
Well I doubt EU3 will have a way of giving you an option to either intensively exploit the gold or not.
Let's just assume that the colonizing powers are sucking the gold out as quickly as possible.
Harlow said:As we all know there was horrible inflation in the 16th century due to all the gold and silver being imported into Europe from the Americas. Is this going to be factored into the game at all?
This monetary base view of the inflation in 16th century has been phased out by most modern days scholars: many think the gold and silver helped an already established inflation mainly due to booming population and demand of upper classes in an economy uncapable to substantially increase production unless doing it at higher marginal costs.
Spain was a nation that was the most vulnerable of the colonial powers to inflation and bankruptcy. First she was one of the major suppliers of Gold to europe BEFORE her colonies were bring gold to europe. One of her major "industries" was gold mining. Spains gold from the colonies served to under cut her own economy. This acts to depress her overal economic strength even though she is bring in more gold. And Spain failed to invest this gold to improve her economic strength at home. Spain started competing with herself in gold production and that was a major factor to her economic woes. The other colonial powers wouldnt be undercutting a major domestic "industry" with the advent of new worold gold being added to their economy. There are thus better able to absorb the increase in gold than spain is. Also a stronger domestic economy leads to a better climate to invest this influx of gold again reducing the negative effects of the large influx of teh new world gold.
I am in no way saying that the other colonial powers would not be adversly effected by a large influx of the new world gold. I am simply pointing out that gold mines in the new world doesnt not equal the same economic problems that spain experience. This would be an example of an event tied to a nation because of its unquie situation. So while every nation would suffer inflation from the gold not every nation would suffer bankruptcy or hyper-inflation because of the gold mines.
I am in no way saying that the other colonial powers would not be adversly effected by a large influx of the new world gold. I am simply pointing out that gold mines in the new world doesnt not equal the same economic problems that spain experience. This would be an example of an event tied to a nation because of its unquie situation. So while every nation would suffer inflation from the gold not every nation would suffer bankruptcy or hyper-inflation because of the gold mines.
OTOH, a game developing where spain loses control of her original gold mines is not impossible (though it should be pretty hard).
In which case, the event should consider the whole picture, rather than be nation-specific.
In which case, the event should consider the whole picture, rather than be nation-specific.
It won't be nation specific. What I imagine is this: Spain gets the Aztec and Inca gold; they get large injections of cash and inflation. Then the countries which are trading in their CsoT get a dose of the inflation. Then the CsoT where Spain trades become inflation brews, but they bring in a Looot of cash (ie, spanish gold).
Then the inflation is applied to all the neighbors.
Boom, you've got the whole of Europe in it deep
Then the inflation is applied to all the neighbors.
Boom, you've got the whole of Europe in it deep
berhaven said:
Is that so? I would think the traditional view made sense. Huge amounts of bullion coming into Europe reduced the value of the coinage, forcing inflation...
DukeWilleo1630 said:I suppose if no one ever colonizes. But, it's a given people will colonize right? So is there an event that increases inflation for Europe as a whole if people are colonizing? This would be pretty neat.
From what I am inferring on what he said, it will depend on if you are getting gold while you are colonizing.
As in if as Spain, you ended landing in Canada and colonizing there instead of Mexico and Peru, that you won't get inflation.
But if you conquer Mexico and/or Peru and take their gold, then Europe may face inflation problems.
Or perhaps you are playing as Spain in 1453 and decide to annex Portugal and colonize Africa instead and then get into a few long wars with France and England preventing anyone from colonizing ever.
Rotten Venetic said:It won't be nation specific. What I imagine is this: Spain gets the Aztec and Inca gold; they get large injections of cash and inflation. Then the countries which are trading in their CsoT get a dose of the inflation. Then the CsoT where Spain trades become inflation brews, but they bring in a Looot of cash (ie, spanish gold).
Then the inflation is applied to all the neighbors.
Boom, you've got the whole of Europe in it deep
That'd be a great system. Presumably, those nations trading in Spain would then create inflation in their own CoTs.
Even players would not be able to dodge the gold bullet without sitting heavily on their merchant class. And doing that should stop that anoying hyperteching we see in EU2.
You gotta debase money to make money.
That would be somehow realistic, though I doubt it will be implemented.Rotten Venetic said: