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Inflation: the Eternal StruggleFollow

#1 Mar 05 2005 at 12:26 AM Rating: Decent
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384 posts
i can forsee some Rate Downs with this, so go for it.

**Yeah, i screwed the title up ^^;; sue me! that's what i get for typing at 1am on a friday night.

I've seen some complaining about the Economy, wether it be Hiptaru's Financial schemes with his clever Astral Ring plan, or just the Tom and Jerries with their constant NM camping:

but look at this;

*Prices go up MORE when the Prime Gilsellers are "banned" for a limited time, leaving them with more gil to make.

*No one tries to bring down the market: why would we? it means less Gil, Heaven forbid you take the initiative on bringing Inflation to a minimal, sure you'll need to Farm more, lower prices for an item, but eventually, it will have an impact.

*Farm more, Mine More, Fish, Craft, Log, Harvest, whatever you can do as an alternate to NM camping. with less people at a NM spawn, eventually there will be a surplus of needed items, Windy AH might actually have more armor. thus overall prices would lower.

*With your Surplus of Items: do some crafting, need Crystals? Farm them with a LV 1 job, or go beat up an Elemental for a Cluster, on the intent of using it, not selling it. with this, not only do you make those Surplus into better items: you can craft the Better items, into an even Better one, thus saving you money, and time. (Given you have the crafting skill)

*With BCNM items: Lower the Price; while this seems dumb to greedy people, with the lowered prices of BCNM items: people have less of a reason to be gimped. Say, an Astral ring dropped to...200k (unlikely, but still) then a LV 36-ish person, can farm, BCNM20, or whatever to buy one, if it drops in the 20, then WOW, you save money: and get a free, VERY GOOD ring!

*On NM items: Again, take the step forward, and start lowing the price. This is undercutting, but when you're attempting to lower the inflation, you have to have this. i'm suggesting it with every item, Signas, Kotes, Archer Rings, etc etc. again, this will eventually impact the market.


~~

Let's TRY to do something for Bismarck's economy, eventually even LV 10 armor will cost 5k + for normal armor, meaning Gimpier people in the dunes, more deaths, and people will continue to leave our server.

so, go ahead and rate me down: i said my piece

Edited, Sat Mar 5 07:55:06 2005 by Naeo
#2 Mar 05 2005 at 3:23 AM Rating: Good
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251 posts
No rate downs from me, but: Please take a course in basic micro and macro economics.

Inflation is the issue of more money entering the economy than leaving the economy. Inflation is something that is actually largely out of the control of the individuals. In order to fight inflation, there would have to be changes from SE to the gil rewards from quests, the cost of NPC items and services (such as chocobos), etc. The recent AH tax change was a move intended to combat inflation.

So the real issue then is that you'd like to see big ticket items go down in price. If the price is going to change, since the economy as a whole is set based on the limitations and rules of the game, there needs to be some movement in either the supply curve or the demand curve. In non-economics terms, either the drop rate on high priced items would have to be increased noticeably, or people would have to want those items less. Telling the sellers "Don't sell for X price, its mean!" doesn't work, and shouldn't work in a pure free market economy (with certain exceptions, such as for monopoly) - you'd have better luck if you told the buyers "Don't buy for X price!". Even that wouldn't work, however, because they'll buy at whatever price thy feel is acceptable. It's an economic concept called marginal benefit.
#3 Mar 05 2005 at 3:51 AM Rating: Good
I'm glad Velfire spotted that. For a while I thought I was the only person that understood the intent of the AH tax changes. And yeah I have to confirm most of the post before mine. The devaluation of gil is due largely to the production/consumption. why? because no one buys from npcs. excepting crafting items. When was the last time you handed over 1.2million gil to an NPC for a +20 attack item for mnk/nin/sam ? never because it doesn't exist. The gil is just changing hands in most cases not being "spent."

I'd like to see NPC's carrying more relevant items for higher lvl's. Oils and Powders maybe? we pay 10+k per stack on ah. why can an npc not carry them? The price can easily be managed by squenix to allow for benefits to synthesizing your own. Of course I also understand that there are major drawbacks to this idea, but I think it is something alot of people are ignoring, or have not noticed at all.

I don't want to open the gil seller/buyer topic because I think we have already more than covered that issue in every thread @@.

Edited, Sat Mar 5 17:55:15 2005 by TeamJnag
#4 Mar 05 2005 at 7:50 AM Rating: Good
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384 posts
yeah, sorry. i knew what i meant, that was typed around Midnight, 1am, so i was rather out of it, i'm gonna edit my posts to make a little more sense, and maybe add a little more/take some off
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