EVE General Discussion

Prices arent related to Incursions.

Technecium was at 60K a year ago, it's at 130K now and unlike most everything else, technecium is under strict monopoly.

You won't see a giant influx of people running incursions. From watching various population samples of incursion runners, lots of people just stop running them eventually and more people come in, the number of people running them remains relatively stable in comparison.

Hard to believe they're speculative "bubbles" because they never came down. The market permanently readjusted upwards - which is what I was getting at.



Or we can just ask CCP if there's inflation... to which they say yes. And they do have those numbers.

-Liang

We are clearly not looking at the same items. Yes, they're not at the same prices they were a year ago, but they've come down since 1 month ago. T3 cruisers, to say some.

And how is some inflation bad? Are you aware who are the only people hurt by the inflation? Yes... The ones who have fixed rewards: Mission runners and incursioners. Everybody else will win more money (total amount) because everything is worth more ISK (while the real value stays the same).

Partly true and partly false. Monetary inflation may not cause a rise in all prices leading to the classically stated "general rise in prices" that is commonly labeled 'inflation'. Monetary inflation can however manifest in markets that are rising and falling due to other factors and intensify those price swings.

Earlier you had also said this a day or two ago,



Monetary Inflation - Increase in the money supply. That's all it means, it has no other meaning. The amount of money inflates, gets bigger. That's it.

Price Inflation - Increase in prices. This is the commonly used although highly misleading use of the word. It is the classic Econ 101 usage, "general price increase". Its misleading nature is revealed by the way it is measured, with a basket of goods.

They can't pick just one good or service as there can be other factors that influence price - supply, demand, regulations, impact of substitutes and complimentary goods, etc. They have to pick a basket in an attempt to even out, to mitigate, all those other possible influences upon the price of the individual goods in the basket. The basket attempts to create an average of market behaviors so that the impact of monetary inflation can be isolated.

The purpose of an inflation measure (e.g. CPI) is not to gauge the value of the goods, but the value of the money. (And to put a finer point on it, the money in circulation, which is a point made in the devblog by way of "velocity". A correlation with the CPI that looks pretty good until recently. A correlation that should not be ignored.)

Does Eve have Monetary inflation - Sure does, by 1300% in the period expressed in the blog. Does Eve have price inflation - no, not when measured with the basket.

We have to recognize that, just because the basket doesn't move, does not mean that monetary inflation isn't having an impact. Inflation of the money supply does not always manifest across an entire economy in the same way or at the same time.

My intent is not to go into politics, so any political comments by others for this following paragraph are silly trolls.

Take the US housing situation for example. A lot of money, credit, was directed towards the housing market by regulation. The money supply, for that sector, went up significantly. Within the span of a few years, since credit was easy, a lot of new buyers with "almost free money" went into that market. This drove up demand of housing by people who had the credit to demand the housing. Had that credit not existed or had been more expensive, the demand for housing would not have been able to come about in the first place.

A lack of an increase in general prices does not mean that an inflated money supply is with out impact. Just because basket prices are not going up, doesn't mean some prices are not being influenced by monetary inflation. When there is a supply or demand disruption or change in factors that contribute to price of an individual good, there is more money available to go into that market and consequently, more money that can be pulled out of that market, increasing volitility. It allows that market to support higher prices than it would have other wise and also allows it to fall much further, in absolute number terms, than it could have otherwise.

It is important to recognize the difference between monetary inflation and price inflation and use them correctly. I think the more interesting question is, why isn't the basket going up.

I wonder what the correlation of NULL SEC trolls in the forums whining about Hi Sec ISK earning ( level 5 missions , Incursions, etc ) is versus the actual implementation of Nerfs to them.
Then on top of that the correlation of NULL Sec isk faucet nerfs to increases in PLEX prices.

I would hesitate to say that anyone who claims that a high income in extremely safe high sec space is a troll. The Risk vs Reward balance IS very ****** up when you compare it to low sec and ****** 0.0. Furthermore, wouldn't nerfing 0.0 ISK faucets result in a reduced PLEX price because there's less ISK flowing into the economy?

On the subject of QQ about Incursions ******* up the economy vs L5 whining - Incursions are a relatively massive ISK faucet (coming in right behind Wormholes in January, IIRC). OTOH L5s pay out almost entirely in LP and are a MASSIVE ISK sink if you actually run them. And a final note - from everything I'm able to gather, high sec Incursions pay out more ISK per member than L5s pay out total (never mind per member!).

Totally neglecting all economic doublespeak, the risk vs reward for running Incursions is totally ****** up compared to other activities I've seen.

-Liang

Ed: Damn, the forums did a number on my post. No, I'm not mad. I just talk this way.

Thanks for that graph. Doesn't look like anything to be too concerned about.

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