Maneeter
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Posted - 2008.04.26 22:07:00 -
[1]
Edited by: Maneeter on 26/04/2008 22:07:59
Originally by: Yakia TovilToba
2. It causes inflation. After the destruction of the insured ship the [MONEY<=>GOODS] balance is affected twice: MONEY increases AND (unlike ratting or missions for example) GOODS decreases. The destruction of an insured battelship contributes several times more to inflation than any level 4 missions (can do the maths on this if required. Note: if you like to criticise this, you need some basic understanding on how infaltion works, if you don't have this, please resist the desire to flame on this particular statement).
I don't intend to flame you on this but you really are wrong when you say that insurance causes inflation. First of all their are two types of Inflation the EVE market and they are Cost-Push and Demand-Pull inflation, their effect on EVE's economy is minor.
In a real economy these would be controlled through the use of interest rates, however with no eve bank where you can save or borrow money, and no housing market this simply does not apply.
Inflation in a macro economic environment is easy to understand as long as you don't use wikipedia! All the economic knowledge on wikipedia is basic, and probably not written by economists. Instead I would suggest going on amazon and buying a good economic textbook, I recommend this.
If you arn't at all interested in economics and cba too read into it, then I propose to you this. IF insurance was causing inflation, then the massive amounts of ships insured and lost each day would gradually push prices up and up and up, due to the fact that CCP do not intervene in the market this effect would not be stopped because no eve player would be willing to sell their goods at a much lower price to stabilize prices. If you project your so called theory in a graph, by now a most items would cost billions of ISK.
Before you go on a rant saying 'Do the maths yourself' and 'I is like teh 1337 person who can like look at the market nd make up what I think is happening and whine about insurance cos I got suicide ganked!' Just cut the Bull****. Go to university and get a Masters in Economics like I did, and then look at the situation again.
Thats all I have to say
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