Why not make tariffs cause inflation?

[Eldorian]

Really, the argument for this seems obvious. In game, Spain isn't bothered by inflation hardly at all, but in the real world, it's extraction of resources from the new world lead to crippling inflation.

Colonial overlords not crippled by inflation either deal mostly with trade or have inflation reducing ideas.

 

[ldevarga]

Really, the argument for this seems obvious. In game, Spain isn't bothered by inflation hardly at all, but in the real world, it's extraction of resources from the new world lead to crippling inflation.

Colonial overlords not crippled by inflation either deal mostly with trade or have inflation reducing ideas.

Could you make a mod that counted the number of gold provinces in a nation's colonial nation's provinces and give the motherland inflation from that? Because just giving inflation from tariffs seems a bit harsh. Although I suppose if it only kicks in once a certain percentage of your income is from tarrifs it would work well.

 

[oblio-]

I frankly like the idea. Now inflation doesn't mean anything, inflation reduction doesn't mean anything either.
Yes, I know that there are bad events at >5% and at >10%, but it's quite easy to keep it down.

This wouldn't hurt the rest of the world a lot since they don't colonize as much - I like it!

 

[richtman]

This would simply lead to colonization being a constant MP power drain though

 

[ldevarga]

I frankly like the idea. Now inflation doesn't mean anything, inflation reduction doesn't mean anything either.
Yes, I know that there are bad events at >5% and at >10%, but it's quite easy to keep it down.

This wouldn't hurt the rest of the world a lot since they don't colonize as much - I like it!

They really should bring back the old system where you could only reduce it if you took economic ideas, that was worth it, -33% not so much.

 

[Kh3lben]

Really, the argument for this seems obvious. In game, Spain isn't bothered by inflation hardly at all, but in the real world, it's extraction of resources from the new world lead to crippling inflation.

Colonial overlords not crippled by inflation either deal mostly with trade or have inflation reducing ideas.

Because
a) It's a theory not proven fact

b)Even the theory focuses mainly on import of gold and silver,not goods in general

c)There are really strong counterarguments to its validity in general and lately those are supported by scientific proof.

So a big fat NO.It's not obvious at all.

 

[Chamboozer]

Really, the argument for this seems obvious. In game, Spain isn't bothered by inflation hardly at all, but in the real world, it's extraction of resources from the new world lead to crippling inflation.

Colonial overlords not crippled by inflation either deal mostly with trade or have inflation reducing ideas.

Not its extraction of "resources", but its extraction of one specific kind of resource: silver. It wouldn't make sense to punish every colonial power with inflation if they're mainly trading in Canadian furs or something like that.

 

[Eldorian]

Could you make a mod that counted the number of gold provinces in a nation's colonial nation's provinces and give the motherland inflation from that? Because just giving inflation from tariffs seems a bit harsh. Although I suppose if it only kicks in once a certain percentage of your income is from tarrifs it would work well.

It would be percentage of income from tariffs that causes inflation, just like it's percentage of income from gold that causes it currently. England always takes economic ideas, and Portugal's income is primarily from trade, so really only Spain would suffer.

 

[Vedinu]

It might be more realistic (although in Spain's case gold caused inf.) but colonization is already pretty pointless so no.

 

[Eldorian]

I don't want to get into what actually causes inflation, that's a hot topic among economists even today. I'm talking about in game inflation. Currently, only gold production, loans, events, and peace treaties cause inflation. In game, you can think of inflation as being the invisible health of your markets.

Regarding furs and sugar and cotton, those are trade goods. Colonial overlords get a bonus to trade power from their colonies, and I'm not saying trade should cause inflation. Tariffs are based on tax and production. Trade income represents the benefit of your merchants being the middlemen in the exchange of goods (which is why trade flows in the direction of the middlemen). Tariff income represents resources pulled from the new world, not trade with colonies.

 

[ldevarga]

It would be percentage of income from tariffs that causes inflation, just like it's percentage of income from gold that causes it currently. England always takes economic ideas, and Portugal's income is primarily from trade, so really only Spain would suffer.

Well if it's only spain that is meant to suffer then it would be better to base it off colonial nation gold surely, because a spain that finds no gold should not suffer the same fate as RL spain.

It also means that a player portugal that kills spain and takes it's place but doesn't find gold doesn't just get inflation for having tropical wood . And so on.

 

[Eldorian]

Well if it's only spain that is meant to suffer then it would be better to base it off colonial nation gold surely, because a spain that finds no gold should not suffer the same fate as RL spain.

It also means that a player portugal that kills spain and takes it's place but doesn't find gold doesn't just get inflation for having tropical wood . And so on.

This argument can be made, if you can get the game to understand what percentage of tariffs are due to gold production. However, that still leaves inflation as a rare occurance, and I kinda like the idea of dealing with inflation as a more standard part of economy management. And I think you can make the argument that tariffs, which represent resources pulled from the new world with nothing in exchange, would be harmful to your economy in a way that could best be represented by inflation in game.

Also realize that tropical wood production is tiny compared to gold production, by over a factor of 10.

 

[Incompetent]

There is (or was) a minor 'Offshore Money-Laundering' exploit, where you use a high-tariff CN to hide all your gold. (CNs can buy overseas provinces as long as you core them, and there's no penalty to overseas gold production.) But I don't think it actually affects the game very much in practice. There's no reason for CNs that don't produce gold to generate inflation - if anything, a glut of goods leads to falling prices, i.e. deflation.

 

[hwoosh]

It is very true that before the advent of CNs, conquering Aztec and Inca would make you filthy rich while also subjecting you to high inflation. Now that's barely modelled. Personally I'd love to see a "treasure fleet" mechanic to mimic the Manila galleon etc. where you had to safely escort an actual ship unit from your CN to get control of each year's gold. Short of that, however, it really does seem like gold from CNs should be treated differently from other income.

 

[Kh3lben]

It is very true that before the advent of CNs, conquering Aztec and Inca would make you filthy rich while also subjecting you to high inflation. Now that's barely modelled.

No IT IS NOT.Stop spreading misinformation for the love of god.

 

[BarrosRodrigues]

Really, the argument for this seems obvious. In game, Spain isn't bothered by inflation hardly at all, but in the real world, it's extraction of resources from the new world lead to crippling inflation.

Colonial overlords not crippled by inflation either deal mostly with trade or have inflation reducing ideas.

IDK if you've noticed but pretty much nothing is historical accurate in this game; anyway if tariffs cause inflation: RIP new world colonization.

 

[IIWW]

Because
a) It's a theory not proven fact

b)Even the theory focuses mainly on import of gold and silver,not goods in general

c)There are really strong counterarguments to its validity in general and lately those are supported by scientific proof.

So a big fat NO.It's not obvious at all.

 

[Kh3lben]

IDK if you've noticed but pretty much nothing is historical accurate in this game

And this is how you justify that paradox implemented inflation in this game.Not the other way around.The concept that inflation can reach that high values in pre 1800 Europe is not only ahistorical but,pardon my manners,plainly retarded

 

[Eldorian]

There's no reason for CNs that don't produce gold to generate inflation - if anything, a glut of goods leads to falling prices, i.e. deflation.

The game doesn't have a mechanic for deflation and the problems that causes. I'd prefer if inflation and deflation were wrapped up into the same mechanic representing economic recession, but until then, tariffs causing inflation sounds like a great idea to me.

 

[Schmoekoeksklok]

I wouldn't mind if it realized how much of the tariff income is from gold and gave you inflation based on that, but inflation for all tariffs makes no sense at all.

And this is how you justify that paradox implemented inflation in this game.Not the other way around.The concept that inflation can reach that high values in pre 1800 Europe is not only ahistorical but,pardon my manners,plainly retarded

You can't look at a country with 20% inflation in game and compare that to 20% inflation in real life, because they don't even remotely represent the same thing. The actual real life inflation should be compared to the yearly inflation increase in game, as that more closely models actual inflation. It doesn't work exponentially, but that's a fairly small difference with the numbers you'll usually see in this game.