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What is acceptable deflation in Eve?
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DarthNefarius
Minmatar Heavy Industries
#1 - 2012-04-03 20:08:32 UTC  |  Edited by: DarthNefarius
Dr E at fanfest had a chart at fanfest showing the comort level of inflation/deflation being +-1% but I'd like to argue almost any deflation would be uncomforable (1% actualy desn't seem to be that bad TBH in my mind a better comfort level would be +1.999% to -0.001% inflation )

Only reason I could think of that some deflation may be hitting 1% in Eve & not be bad is that Dr E is preparing for Dust becomming a huge initial ISK sink when it gets introduced in full force in Q4
An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
Barakach
Caldari Provisions
Caldari State
#2 - 2012-04-03 20:19:53 UTC
Deflation can't go on forever and it discourages investments. I kind of like the idea of ~0% from a fairness standpoint.

Over all, I am not educated enough in the subject to really know. I hear irl, that 2%-4% inflation is good, but even that is subject to debate.
David Forge
GameOn Inc.
#3 - 2012-04-03 20:39:12 UTC
I could be wrong but I thought Dr. E wanted to see about 1% inflation being the norm. Hexxx had a great thing a couple of Eve Morning Report Weekend Editions ago about inflation and deflation and gave a very thorough but easy to understand explanation of why deflation is bad and moderate inflation is good.
Hexxx
Sebiestor Tribe
Minmatar Republic
#4 - 2012-04-03 20:45:26 UTC
David Forge wrote:
I could be wrong but I thought Dr. E wanted to see about 1% inflation being the norm. Hexxx had a great thing a couple of Eve Morning Report Weekend Editions ago about inflation and deflation and gave a very thorough but easy to understand explanation of why deflation is bad and moderate inflation is good.



Yes, yes I did. Big smile

http://www.evemorningreport.themumm.com/?p=150
DarthNefarius
Minmatar Heavy Industries
#5 - 2012-04-03 21:07:07 UTC
Hexxx wrote:
David Forge wrote:
I could be wrong but I thought Dr. E wanted to see about 1% inflation being the norm. Hexxx had a great thing a couple of Eve Morning Report Weekend Editions ago about inflation and deflation and gave a very thorough but easy to understand explanation of why deflation is bad and moderate inflation is good.



Yes, yes I did. Big smile

http://www.evemorningreport.themumm.com/?p=150


I listened to this a couple weeks ago & in the last weekend report you too seemed to scratch your head about the 1% deflation comfort zone too correct? Right now we're in an inflation period that histoically dips in the northern hemispere's summer months into deflation ( especially the summer of 2007 forsome reason? ) with the drone bounties added as a ISK faucet I doubt inflation will go away this summer. Q4 seems to be the big question mark alluded to by Dr E as a big change economically.

Like I was hypothisizing earlier maybe with the intro of Dust there's some expectations that there will be alot of new outlays/investments in new products not currently in the market that will... I don't know guess I can only make wild ass guesses at this point
An' then Chicken@little.com, he come scramblin outta the    Terminal room screaming "The system's crashing! The system's    crashing!" -Uncle RAMus, 'Tales for Cyberpsychotic Children'
Vaerah Vahrokha
Vahrokh Consulting
#6 - 2012-04-03 21:42:11 UTC  |  Edited by: Vaerah Vahrokha
There's no "good" inflation or deflation number as they oscillate like everything in the markets and are subject to yearly cycles.

Therefore EvE could use deflation in the summer to "reset" prices and also give better long term buying opportunities and inflation as the time approaches the winter patch.

There has to be a sort of better equilibrium, as not all the professions scale well with inflation nor it's newbie friendly.
Plus few in this forum talk about SP inflation. This is another dimension to the issue, making high SP characters far ahead into outpacing inflation while they don't have as much advantage during deflative periods.

I am also surprised nobody of our many theorycrafters has talked about inflation influence on bonds and loans.

Is a 5% loan as appetible during a deflation time vs an 1% a month inflation time? Nope. Inflation eats into interests since you'll get < 5% net profit after that month.

Is just keeping ISK in your pocket as appetible? Nope again. If you have 10B in wallet today, you'll have sensibly less valuable ISK at the end of the month.

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cuoredipietra famedoro
Deep Core Mining Inc.
Caldari State
#7 - 2012-04-03 22:17:49 UTC  |  Edited by: cuoredipietra famedoro
I believe inflation/deflation in EVE cannot be taken as yardstick to measure the health of in-game economy or potential future moves by CCP itself.

It is true that CCP probably wants to keep both inflaction and deflation balanced over time: this way they can keep the game affordable for new players while they scale up in Skillpoints and ISK. However, a 1% deflation in the following months is unlikely to serve the purpose of preparing the introduction of DUST economy in Q4.

This is mainly because - looking at the past - CCP seems to have generally *reacted* to market unbalance rather than preventing it proactively.

Recent example of reactive approach: the tardive removal of the nocxium price cap.

It is more likely that they will react to market unbalances after the introduction of dust.

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