Economy

Since GC trade is dead, I think it's actually fairly easy to describe the simcountry economy...

Let's say you have a country with 1 corporation and 90% employment.

There are three types of consumption this country may participate in:
(1) Monthly, the permanent of loss of products from the market by both the population and government use.
(2) Player War, the permanent loss of products from the market by direct military attacks against players.
(3) Infrastructure, the permanent loss of products from the market by constructing facilities.

These share similar traits that make them "sinks" that other types of spending do not share. First, the products are removed from the possibility of ever being traded. Second, the products are not creating other products (like corporation supplies) or adding value to existing products (like military upgrades). Third, the products ar

I think I can do this next one pretty easily actually. This will be about the gamemaster's influence on the world market.

Okay, so for the example country, I produced an "asset-value" of 2.00B, but I produced it at a quality of ~225. The corporation consumed an "asset-value" of 0.75B, but at a quality of ~180, the country consumed 0.55B of it's "asset-value" at ~125 quality and 0.12B of it's asset value at ~305 quality. if we treat sales to the market as the "standard" of quality which is reasonable enough... we get 0.75*2.25/1.8=0.94B in consumption if the product was purchased from the market at the price it was sold for the corporation supplies. Because of the way the transactions on the market work, it is an effectively if not technically accurate description if I say I sell 225 Q goods to the GM and buy 180 Q goods from the GM. In other words, the GM is effectively printing cash to cover the disc

Notes:
(1) Where I said 12.5% of the GDP was actually 11% come to think of it.
(2) I said selling to gamemaster and buying from gamemaster... but I realize now that some people could confuse it as the cash simply coming from other players with that so let me expand, when you sell 225 Q good to the world market and other players buy at say 125Q, you get paid for the goods at 225 Q and they pay for the goods at 125 Q. It is this phenomena that I'm describing.

I also forget to mention the other GM influence on the economy... in the event of huge shortages in a product category, the system will automatically generate product to sell on the world market. In other words, a huge market shortage that causes the system to intervene is a 1:1 product faucet, cash sink. In all likelihood, this system in the long run offsets the aforementioned cash faucet, product sink caused by the systematic quality discrepancies that account for

I feel reeeaaaly stupid right now...

ditto

To be fair, I don't know if there are existing economics terms similar to the sinks and faucets. This understanding comes from years of playing these types of games. That is to say, it is a completely informal understanding. In either case, it should still hold up as true.

To help explain what I was saying:

Sink = place where an exchangeable asset is removed permanently from the economy.

Faucet = place where an exchangeable asset is added to the economy.

These are meant to look at the whole economy.

Something I probably did that may or may not be weird is to take a look at more than just the game currency, but also at product. The reason for this is because of my understanding that inflation is caused when the currency to product ratio becomes larger, with deflation being the reverse.

I described product with "asset-value" instead of numbers because obviously, there are so many products ava

I guess the standard economics terms for a faucet/sink would be production/consumption for products... so sink/faucet exists more for game currency since it operates like a product in virtual economies, as opposed to real life where it would be inappropriate to treat it as such.

Faucet/sink is like supply/demand, but excludes stockpiling, unloading stockpiles, spending, and saving. This difference makes faucet/sink more important to understanding the future of the market.

For example, you could say that some market bubbles are caused when stockpiling (i.e. for speculation purposes) drives the price of the product up. However, the product is not consumed and the cash supply remains stable. Generally, high price is the signal for investment... meaning production of the product will likely increase (product faucet on). The cash to product ratio is shrinking every day. According to how I said thing earlier, it is very clear th