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Adunh Slavy
817
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Posted - 2013.05.20 18:05:00 -
[31] - Quote
Anastasia Aleksandra wrote:I don't have much of an education in economics but...is it even possible for inflation to be a risk at all?
- Are there any risks to ISK becoming a secondary or less-preferred currency? To what?
- Also, is there a finite amount of ISK in the game? If not, there's no real risk of monetary inflation since the quantity of currency in the game would never decrease.
- There's no central bank in the game to buy-back ISK, is there?
No - Simply because the market interface prices everything in ISK. ISK can be transported any where instantly and to anyone with complete security and atomically.
No - ISK is functionally unlimited, but its production is quite unlike real world fiat currency. There is no chance of a systemic hyperbolic event. CCP would have to shut down production of all raw materials to see anything resembling hyper inflation in Eve.
Sort of - CCP could start purchasing ISK if they wanted to and soak it up with anything they wanted. ISK sinks are the most likely vector of soaking up excess ISK from the system. The so called Tobin-Tax, as it relates to Dust, is the most visible sort of sink that performs as a monetary valve at this time. Its its function, however, is not to soak up ISK from Eve, so much as slow the flow to Dust and upset the pricing assumptions made by devs. |
Anastasia Aleksandra
Science and Trade Institute Caldari State
0
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Posted - 2013.05.20 19:52:00 -
[32] - Quote
Vincent Athena wrote:Sola Mercury wrote:Tatminator wrote:[quote=mynnna]
Bounties are a bit of neither if I know mechanics right. If i'm correct bounties are paid for by players so it's really only change of hands rather than increase or decrease in pool. She/he speaks about bountys players collect by killing red crosses. I think the most anti-inflationary effect comes from massive ISK piles sitting unused in old players wallets. CCP's economics people have said many times that its not the total ISK in the game that drives inflation, but the velocity of money. That is how fast people spend it. So yes, large quantities of ISK sitting doing nothing do control inflation. Based on the plot linked near the top of this thread, we have actually had on average deflation over the lifetime of the game.
In EVE, the quantity of money is always increasing but the creation of goods is a function of the number of capsuleers actively converting resources to goods and services. If an increase in the velocity of money could be the result of either an increase in the quantity of money or an increase in the consumer price index, wouldn't that make the rate at which resources are converted to goods and services the anti-inflationary effect? |
Angelique Duchemin
Serenity Prime Kraken.
566
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Posted - 2013.05.20 19:56:00 -
[33] - Quote
I believe the rate at which we buy ships. Get them blown up and buy new ones remain in balance. That's the demand that drives the construction of new ships and the prices of raw materials too. But the amount of ISK just increases. We miss you Saede. |
Kara Books
Deal with IT.
619
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Posted - 2013.05.21 00:11:00 -
[34] - Quote
Sabriz Adoudel wrote:The PLEX/ISK exchange rate is IMO a measure of inflation.
Bingo Ding Ding Ding Ding! |
Adunh Slavy
825
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Posted - 2013.05.21 12:50:00 -
[35] - Quote
Something that came across my path this morning, some of you may care to read it. Talks about the hyperinflation in Diablo.
http://mises.org/daily/6435/A-Virtual-Weimar-Hyperinflation-in-a-Video-Game-World |
Angelique Duchemin
Serenity Prime Kraken.
567
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Posted - 2013.05.21 20:41:00 -
[36] - Quote
Kara Books wrote:Sabriz Adoudel wrote:The PLEX/ISK exchange rate is IMO a measure of inflation. Bingo Ding Ding Ding Ding!
That's not a good estimate either. Whenever plex prices start going up; there's a sale all of a sudden.
There's nothing natural about plex prices. Not in the least. CCP needs the plex prices to reman stable. High or low is bad for them. We miss you Saede. |
Chihiro Chugakusei
The Fiefdom of Chi
1
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Posted - 2013.06.01 03:08:00 -
[37] - Quote
My battleship has gone up 10% in price in the last week. Most ships are going up too and have been going up for some time. When I logged on for the first time in 2 years, a few weeks ago, everything had gone up in price by 500-800% since the last time that I had played. |
mynnna
GoonWaffe Goonswarm Federation
1244
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Posted - 2013.06.01 04:37:00 -
[38] - Quote
Chihiro Chugakusei wrote:My battleship has gone up 10% in price in the last week. Most ships are going up too and have been going up for some time. When I logged on for the first time in 2 years, a few weeks ago, everything had gone up in price by 500-800% since the last time that I had played. Battleships have gone up in price in the last few weeks because minerals are going up, and that's because battleship mineral requirements are going up in odyssey, which means people are building vast quantities of them.
And I honestly doubt "everything" has gone up 500-800% in the past two years. In fact, I know for a fact that that isn't true. Now, minerals and thus most tech 1 goods are more expensive than you'd remember from two years ago, but that's because CCP removed drone alloys, which were an enormous source of minerals in the game. Reduced supply resulted in higher prices. But not THAT much higher.
Neither factor has anything to do with inflation as being discussed in this thread. Member of the Goonswarm Economic Warfare Cabal |
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