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    Real Strategy Requires Cunning

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So i decided to go for an easy game and i was playing castile which happens to own a gold province from the get-go. And as I play castile I begin to notice frigtheningly disturbing fluctuations in my annual inflation rates. I had decided to be very conservitive from the beginning until I have Govs, so I was trying to keep my inflation at .10< annually. I began to notice that despite keeping to this strategy there were at times when inflation would jump up to .45-.50 annually even if the knob was untouched. When you check the inflation info it tells you your inflation is a component of 2 factors, your treasury/(how much you want to gain or lose on monthly income), and gold which I imagine to be respective to your gold production. When the inflation was .10< the gold component contributed absolutely nothing to the inflation factor. However when the inflation fluctuates the gold production seems to exggerate inflation (as we all know its supposed to), but there was some activity that i was involved causing this fluctuation. And so I think Im down to 2 culprits. I believe the gold inflationary factor in this case 1)stability; i noticed i was around 0-+1 when this was fluctuating and by +2-+3 stabilty I was back to less then .10 annually. 2) I had 1 loan which i paid on time. Has anyone got any ideas?????? :D
 

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Well loans have a tendency to push up inflation rather bad so avoid them at all cost unless you are really desperate. Playing such a big country you should be able to avoid them.
 

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Yeah my feeling is also toward the loan but, I only had 1 loan, and these fluctuation events occured over the course three decades, which could give the stability as cause for some more credibility. Furthermore I avoided any fighting until the mid 16th century; i just peacefully vassalized navarra. One thing which constantly kept me on guard was the instability. Im looking for some one who has also experinced this..phenomina..I actually like this fluctuation for gaming purposes, but I want to know what its cause is so Ill know if I can avoid it....
 

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OK I went back into the game to see what would happen if I destabilized castile, and low a behold the inflation ballon around 0 and -1, w/ a gold prodtion income of 7.00 it was returning an inflation of .35 annually, so if you have any gold provinces, or manifest destiny yourself all the cities of gold you pay a great price when your realm is in unrest.
 

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Originally posted by Idiotboy
Well loans have a tendency to push up inflation rather bad so avoid them at all cost unless you are really desperate. Playing such a big country you should be able to avoid them.

yeah I agree, large nations usually don't need to resort to loans.

from what I've seen, only the tiny small nations who have like an average annual income of 12 ducats might need loans to fund critical wars, etc.

but if youre a small nation, taking loans is dangerous. because if you cannot pay it off, you will start on a downward spiral to bankruptcy :eek:
 

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yupp loans sucks
only large nations can afford them, but they can afford to be without them
 

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Loans are a pretty desperate step. In all of my playing of EU2 I've yet to intentionally take a loan - I've taken 1 or 2 by accident due to an expense. The inflation and interest are murder, and it's a downward spiral regardless of whether you pay it off or not. When would a loan actually be justified? I can only think of two situations where it would be worth it. One is simple survival - you could be annexed otherwise. This means having only one provence. The other is when the potential gain is HUGE, and you're small enough that 200d is a lot of money. For example, you have a shot at taking a center of trade you don't have the troops to otherwise attack.

Oh, and then there's the unrealistic third option: The scenario is about to end...
 

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Very insightful Pandemonius. I believe you have just explained why the Spanish AI in my games has some very, very LARGE spikes in their inflation charts during periods of Civil War and high unrest....... I was wondering what caused that......

Yours -

Lord Khang
 

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Finally someone understands what im talking about; its got nothing to do with loans, paradox has created a huge balance against countries who maintain large gold provinces with no concern to domestic policies; its bloody brilliant...
 
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Finally someone understands what im talking about; its got nothing to do with loans, paradox has created a huge balance against countries who maintain gold provinces with no concernto domestic policies; its bloody brilliant...
 

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Originally posted by Pandemonius
Finally someone understands what im talking about; its got nothing to do with loans, paradox has created a huge balance against countries who maintain large gold provinces with no concern to domestic policies; its bloody brilliant...

Yup. Not only that but neighbouring countries of a goldproducing countries also get an inflation penalty.:)
Pretty nice!!
 

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I ended up going back once more to figure out this fluctuation and ive finnaly cracked it. These spikes have nothing to do any of the reason i cited up above, so they are wrong (though loans do contribute to inflation, it isnt applicable here). I found instead that 11 months out of the year the the inflation ballons in the budget window, on the treasury knob; the info on inflation. Theres no way out of it for gold producing countries until governors. Quite a balance act..... :cool:
 

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Originally posted by Pandemonius
I ended up going back once more to figure out this fluctuation and ive finnaly cracked it. These spikes have nothing to do any of the reason i cited up above, so they are wrong (though loans do contribute to inflation, it isnt applicable here). I found instead that 11 months out of the year the the inflation ballons in the budget window, on the treasury knob; the info on inflation. Theres no way out of it for gold producing countries until governors. Quite a balance act..... :cool:

Once a year, every year (during February, I believe), you cannot trust a single figure you see on the Financial Report screen. You have to wait a month to get valid numbers. Sounds like that's what you're seeing.

It was like this in EU I too. I forget what the reason was.