Inflation - an alternative design?

[Tim O]

I hate inflation In my current game as Brandenburg I've gone banrupt four times, and taken inumerable loans pushing my inflation to 155%, second only to Spain who is in the 180% range. Luckily I just got an exceptional year with 300dc and -15% inflation.

 

[Stonewall]

I liked Onslaught's initial proposal. In addition I would like to be able to pull the slider all the way over to the left...in effect instituting a national policy of deflation, maybe to the degree of 1/2% per year. This would represent a government's conscious decision to take money out of the national economy.

I have no idea as to what historic merits this option would provide, but its a nice way to add to add to the current economic model and give the player a bit more control over things.

 

[unmerged(5110)]

it will probably greatly increase your chances of this being considered if you can write an "Inflation AI" which helps the AI to deal with this change in gameplay!!

Because it is a good idea, but i can see the AI having a hell of a time trying to manage inflation!!

What conditions would cause the AI to print money??? a coming war?? restoring political stability?? having to pay indemnities??

And if an AI found itself in a position of high inflation, how would it manage to bring the inflation down to a reasonable level??

I would also recommend that a monarch with an excellent administration rating can help bring administration under control.

But this idea is excellent i must say again.

 

[unmerged(5822)]

Originally posted by XieChengnuo
What conditions would cause the AI to print money??? a coming war?? restoring political stability?? having to pay indemnities??

Basically, the AI would "want" to raise war taxes, print extra money and take loans in times of war when it feels a need to raise an army (i.e. the AI takes those measures when short on money AND armies). During times of peace, it would try to repay its loans (no spending on buildings and stuff when gold is less than loan_size*loans, and would only print money when the expected expenses of a year would be greater than the yearly income).

 

[Mowers]

Originally posted by Onslaught
Sadly I've not yet built a grand temple for the glory of Paradox and Johan the Prophet, and therefore this thought will most likely not get much divine attention.

Nice idea

Shame about the immature statement though. As in RL if you say things like that you arent going to be taken seriously no matter how much sense you talk.

What is depressing is that I know how much Johan works on this project out of the office and how he doesnt think like you suggest.

 

[unmerged(5822)]

Re: Re: Inflation - an alternative design?

Originally posted by Mowers
Shame about the immature statement though. As in RL if you say things like that you arent going to be taken seriously no matter how much sense you talk.

What is depressing is that I know how much Johan works on this project out of the office and how he doesnt think like you suggest.

You obviously didn't read what I wrote in the way that it was intended. Shame that you're so quick to assume the worst about others and then resort to the use of personal attacks.

What I wrote was intended as both praise of Johan (by suggesting that a shrine would indeed be appropriate) and stating that I won't get my hopes up (by belittling myself in comparison to "Johan the Great").

 

[Mowers]

Re: Re: Re: Inflation - an alternative design?

Originally posted by Onslaught
You obviously didn't read what I wrote in the way that it was intended. Shame that you're so quick to assume the worst about others and then resort to the use of personal attacks.

What I wrote was intended as both praise of Johan (by suggesting that a shrine would indeed be appropriate) and stating that I won't get my hopes up (by belittling myself in comparison to "Johan the Great").

I suggest you edit it. I read it a couple of times to make sure I had understood.

 

[Carolus Rex]

Back on topic people.
Don't discuss other matters than ones related to EU2. If u want to duke it out, don't do it on this board.

 

[unmerged(5822)]

Originally posted by Carolus Rex
Back on topic people.
Don't discuss other matters than ones related to EU2. If u want to duke it out, don't do it on this board.

My opinion exactly.

 

[Languish]

These aren't bad idea's at all...

 

[Chengar Qordath]

I like this model, much more realistic.

 

[unmerged(11354)]

These are all great suggestions, but you forgot to factor in how inflation affects loans. If inflation is higher than the interest on a loan then it is cheaper to borrow money, conversely it becomes more expensive to borrow money during deflation under the same circumstances.
Example: You need money and take out a 200 ducate loan to pay for a new fort. After it gets built you turn the inflation slider to massive inflation, now what cost ten ducates cost a hundred-the money is worth one tenth of what it was worth and so will the loan. when you pay back the loan you will be paying back only 20 ducates (of purchasing power).

There would have to be a major overhall of the loan system to take into the effect your inflation system or everyone could beat up on the system.

 

[unmerged(16008)]

Inflation Model

The game doesn't require a more complicated system, it requires a simpler one.

Inflation in a nation operating on a gold standard (on any fixed exchange rate regime) doesn't operate anywhere close to the way it does in EUII, and as such I consider it the most frustrating and weakest part of the game. Inflationary periods before the widespread adoption of printed money occurred when the government chose to print money to cover short-term high expenses (such as war) or when the supply of gold/silver increased substantially. However, in both cases inflation subsided after the supply of money decreased again (whether the amount of gold being shipped from the New World or from the readoption of the gold/silver standard after printing money). Instead of governors controlling inflation (which I don't understand), inflation should just decrease naturally over time towards 0. That way, inflationary periods would occur when new mines were found (this would require mines to become useless over time - or to cease increasing inflation past a certain point), or when war/disaster necessitated printing money (which I guess is approximated by taking loans even though they are essentially two separate, and essentially opposite responses since printing money is just a discrete tax). Then when things were more stable, deflation would set in as the country exported its inflation and its economy grew to provide more goods for the same amount of money. This would much better approximate the historical behavior of inflation and also make it possible to actually control inflation in a country that doesn't have 30+ provinces.