Democracy 3

Democracy 3

Inflation / Deflation Simulation 1.0
24 Comments
Reverford 9 Dec, 2021 @ 2:35pm 
Shouldn't it rather be a "Print Money" or "Quantitate Easing" policy that you can implement, which then effects inflation and deflation? Which then decreases/increases currency strength and purchasing power, which then increases/decreases global trade and pushes up asset prices which is good for the wealthy and bad for the poor etc etc...
Evil 19 Apr, 2020 @ 11:52pm 
You should probably review your mod, I played as Australia and the first thing I noticed is that GDP was cut in half thanks to the out of whack modifiers you placed on the inflation tab.
Franco 24 Aug, 2019 @ 2:37pm 
or Increase Money Supply
Franco 24 Aug, 2019 @ 2:36pm 
inflation should reduce currency strenght
K10003 6 Sep, 2016 @ 11:01am 
Increased money supply and inflation should effect the currency strength
JWSV 27 Jul, 2016 @ 7:45am 
I am just curious, would stagflation be able to be simulated? I just downlaoed the mod, so I actually haven't testes it out, but it would be cool if that were to be simulated.
Barbarossa 30 Aug, 2015 @ 4:57pm 
Is their anyway you could make it so inflation/deflation actually effects the value of a currency? So let's say if your country has to much debt, you could then increase the money supply, causing inflation so the debt is de facto smaller, although if you do this to much it could screw up your credit rating.
I would also like if you could invest your money researves, rather than having them all sit on the side.
Finally, when debt reachs the point of becoming a crisis, you should then be able to default on it (massivily increasing interest rates, causing a credit crunch, making self employed, capitalists, and forgein relations go down.) :steamhappy:
goelled 25 Jun, 2015 @ 4:11am 
This would be an interesting mod but players run governmental policy (fiscal), while this is related to monetary policy which is in the purview of Central Banks, government organisations but in effect independent. It should be more like policies used to tackle inflation/deflation
chasik 18 Mar, 2015 @ 11:47pm 
While I greatly like the both the idea of the mod and the execution, I'm baffled. Shouldn't large GDP actually derease inflation and demand a larger money mass to prevent deflation? It seems to me that the relationship between GDP and inflation has the wrong sign.

Of couse, alternatively it could be just me being a tetal ignoramus in economics.
mahasamoot 9 Nov, 2014 @ 1:10pm 
I'm looking at adding a yield spread to simulate the Central Bank making it easier for the government to borrow money. Looking at data from the FED, it seems that between 1991 and 2014 the spread has varied between about .75% and 2.25%. The lowest point in 2007 and the highest in 2008. So it seems that government chokes off private investment the most in a bust, exacerbating the panic. This would be a very good thing to add to the simulation, as the top reason for having a Central Bank is to get easy money for the government.
mahasamoot 9 Nov, 2014 @ 10:06am 
It would be cleaner to have one policy, Central Bank, which gives a change Money Supply slider. In the middle even, to right lower, to the left increase. It should cost a lot of political capital to decrease the slider, and zero political capital to increase the slider. Fiat money always leads to inflation, because he who has a press will print. Also, the lag time should have a random factor. The lag should get shorter as people get used to inflation, they anticipate it, and raise prices right away.
mahasamoot 9 Nov, 2014 @ 10:06am 
Implementing the Central Bank policy, and related policies such as banking regulation, and government sponsored depositor's insurance, increases the frequency and severity of Bank failures by encouraging risk, and in the case of regulation reducing flexibility. For example, historically in the United States we had laws against branching, and unitary banks would fail on a regular basis due a dearth of diversity in their loan portfolios. Thus, we should see a steady stream of Bank failures cropping up as situations. Bailing them out will cost the government money, and increase the likelihood of more and more costly Bank failures going forward.
mahasamoot 9 Nov, 2014 @ 10:06am 
Increasing the money supply should reduce equality, because the new money comes in the the banking sector and benefits those that get the new money before prices go up. This hurts savers and the retired the most, while benefiting borrowers. Decreasing the money supply, through the Central Bank should also reduce equality, but in the opposite direction.
mahasamoot 9 Nov, 2014 @ 10:05am 
Inflation should decrease currency strength, boosting exports, while reducing imports, and vice versa. You have this flipped backwards in your manual.

Severe Inflation should also cause unemployment, as Germans learned full well in the inter war years.
Kairon Woulfgang 6 Nov, 2014 @ 10:34am 
I think this mod is backwords... Or I don't understand inflation or deflation
Deflation: Shouldn't unemployment go down not up? currency is worth more purchicacying power is higher so people can work for less money/hour so business owners and self employed should be happier.

I understand it upset's Capitalists but sense spending power is stronger it should improve poverty making Retired and Poor people happy.

Sever Inflation: Currency Strength and purchasing power go down but GDP still goes down too? I was hoping this mod would help GDP at some point.
vlad the non impaler 3 May, 2014 @ 3:49pm 
maybe add hyperinflation
[MX] Centerfielder75 19 Apr, 2014 @ 9:26am 
i love this mod!!
thats what i have been waiting for
great work!
Selon Nerias 11 Apr, 2014 @ 8:28pm 
Nice, I had halve a mind to make a mod akin to this one myself but was just to lazy to actualy do it :),

@ |-OF-| Free , about the GDP correlation, that would not be the case if the increase in GDP is deu to increased production such as what results when you higher your efficiency, but in general yes that should happen
zakattack04 6 Apr, 2014 @ 2:10pm 
And when I thought the game just got complicated enough.
Tymisy 6 Apr, 2014 @ 12:24pm 
The GDP should raise the Inflation as an increasing GDP has the consequence that the capacity of the
potenial output is more and more stressed by the total demand - the companies can't produce an
infinite number of goods, so they must increase the price of the goods.
Inflation is nothing else than a rising price plateau - i would say the sales tax sould has
an direct connection to inflation - that is inflation caused by the gouvernment.

I have some more suggestions but i think this is long enough for now:),
maybe we can establish contact

Nevertheless it is a great work!
Tymisy 6 Apr, 2014 @ 12:24pm 
Actually, I really like this mod, always wanted a mod to operate monetary policy;).
But I don`t understand several effects and does have some suggestions.
First the 'investment' should have an effect/connection to unemployment as often increasing Investments
require additional man power (to operate the new machines for example) and increasing investment would generate
more employment in the capital goods industry (decreasing unemployment).
[MX] Centerfielder75 30 Mar, 2014 @ 9:45am 
i love this mod!!!!!
Joe Bidenopolous 30 Mar, 2014 @ 4:46am 
Never Mind i got it working and it is great it makes the game alot harder but in a sublte way it hurts your gdp and econmony in general alot more complicatid which is great and i love this mod and recomend this thats all...
Joe Bidenopolous 30 Mar, 2014 @ 4:02am 
This mod Looks Great but my game dosen't work i have loads of mods installed is it incompatible with any of them or am i a idiot and missing somthing please tell me soon thats all...