Central Banks

[Fire_Unionist]

Consequences of borrowing?

I think I might have found an exploit. Playing as Uruguay, I could find no way to balance my budget and still grow the economy. After getting bored with the limited possibilities that Uruguay had to offer, I decided to take out a loan. Since I got s little bored, I decided to maximise spending, reduce taxes as low as possible, and subsidise my pops. Obviously I had a massive deficit, and massive debt. It's 1851, Im about 100000 in debt. There doesn't seem to be any consequence to this, as my pops all have their luxury needs, my economy is expanding, railroads all over Uruguay. And all of this is courtesy of the Bank of England(the UK controls about 99.9 of my debt). Whenever I run out of money I just take another loan. I'm slightly dissaponted as I wanted to get gunboated. It's funny that almost everything in Uruguay is paid for by Britain. Will there be any negative impact?

 

[Sid Meier]

OK, so how does national bank work?

My pops have 300,000$ invested, does this get back to them as extra income?

 

[unmerged(94472)]

I think it's just there to borrow against when you need a loan, as opposed to borrowing from another country. Also, other countries can borrow from you, which earns you interest and allows you to conduct gunboat diplomacy.

 

[OHgamer]

no there is no interest paid to individual savers as far as i know. POPs deposit their extra money only after paying taxes and buying all their needs (including Luxury needs)

however if POPs need money to be able to purchase their needs, they can withdraw their savings in the national bank and use that to purchase their needs. Once those savings are gone though, if the POP still cant afford their needs, the risk they may devolve begins to grow.

bank also serves as a fund to help capis start up industries in new areas if they have no income with which to begin construction

and the national bank serves as a source of funds for the player if their current treasury runs out - you end up borrowing the money (at interest) and then pay it back later. Kind of like a bond market, you are selling government bonds to the investors who will get their money back with interest.

 

[podcat]

My pops have 300,000$ invested, does this get back to them as extra income?

interest paid by other countries taking loans from your bank is distributed among pops that have put money in the bank also.

 

[Sid Meier]

If I take a loan from my own bank, would that help my pops make more money? Right now only Sciliy has borrowed a significant amount.

 

[podcat]

I think so, but only very little

 

[Sid Meier]

Every bit helps I think with 400,000,000 people.

 

[JoeGiavani]

Every bit helps I think with 400,000,000 people.

Just lower taxes or subsidise income, it'd be far more effective.

 

[Petrarca]

I prefer cheek to good sense:

No, debts are inherited.

Ah believe I will appeal that decision, suh.

 

[Sid Meier]

Just lower taxes or subsidise income, it'd be far more effective.

I've done both as much as I can.