Market Discussions

So you are contradicting your self?

It sure was entertaining to read incident #2,703 of a thread getting derailed by yet another fruitless shouting match over the definition of inflation.

And what are you doing? Instead of understanding the difference between monetary inflation and price inflation, you make the error most people do. You equivocate your own arguments. It is this equivocation that allows you and many others to be duped. Frankly, if you don't care to understand the difference, that is on you. Someone else reading this will get it and say "Ah ha!"



I'm rather familiar with Milton, and much of the Chicago School and other monetarists. Sadly, Friedman was right about a great many things, except monetary policy. He advocates freedom and market solutions to just about everything, except money. But, this whole Milton business is a red herring, so whatever.

Oh and stop projecting, thanks.



You are annoyed because you continue to equate monetary inflation with price inflation. They are not the same thing, they are of course related. It is understanding the difference that you refuse to do. Once you understand the difference, then you can begin to understand the relationships much more clearly. Staying in the dark is on you.

Now if you want to talk about how there can be such high monetary inflation in Eve, with out equally high price inflation, then that would be a worth while discussion. There are quite a few factors, one of which is in your paragraph below, the other factors are quite interesting.

Those other factors are however beyond the grasp of sloppy words like, "inflation". more precise terms, like Monetary Inflation and Price Inflation, are required.



You are either not reading properly; attempting to gain ultimate wisdom from reading one sentence, not paying attention, or just making stuff up if you are under any illusion I do not fully grasp the meaning of that paragraph.

That is one way to look at it, money printing. Could also consider an expansion of credit and debasement to also be forms of monetary inflation. But yes, in general, an increase of the supply of money. It is the money supply that 'inflates', hence the original use of the term 'inflation' ... what inflated? The supply of money.

What impact does the size the money supply have on prices? That measurement is price inflation/deflation. How is it measured? Generally with the so called "basket of goods". It is this measurement, of the impact of the money supply upon some arbitrary basket, that leads to the vulgar use.

On a couple of side notes:

Debasement is not a factor in Eve ISK. So no sense in discussing it.

Credit expansion takes two forms in Eve. The smaller of the two is loans and what little banking there is in Eve. They might as well not exist from a macro perspective. The other form of credit expansion is the margin trading skill. How much of a factor it is anyone's guess, but certainly it contributes to more and larger buy orders than would be other wise possible.



This is where you go off the tracks and where most people get tricked. How inflation of the money supply impacts prices is never even across the board, or if you prefer, across the basket. It is this reliance upon some arbitrary basket and the need for the "basket to move" that allows people to be mislead.



It may not be interesting to you, it is to others. How can Eve have such high monetary inflation with out equally high price inflation? Quite a few things play into this. Certainly the composition of the basket upon which you so eagerly rely, productivity is likely the largest factor, inactive accounts, lack of wealth expressions, lack of monetary utility, lack of capital market, inverted broken window, lack of depreciation upon heterogeneous capital, lack of geographical capital/property and a market for such, etc.. All interesting ideas to economics geeks.



Agreeably there is not price inflation in Eve for the "basket". But can we say the same for things not in the basket or for individual items in the basket? Would the price of T2 BPOs be as high as they are if there were less ISK in the economy? Would the price of PLEX, be as high if there were less ISK? Rare ships, officer modules, trinkets and odds and ends? Could the price of technetium gotten as high as it did at its peak, if there had been less ISK in the economy?

The basket neglects many of these items. The basket is what Doc E says it is, and tends to be the most commonly used items in the game. That makes a lot of sense for Eve. The same sense does not apply to the basket in the real world, but let's stick to Eve.



My forum world eh? Shesh.

The point is, back what I said in post #3,

"It may seem contradictory, that to reduce inflation, CCP must let prices rise by increasing demand (ice) and reduce supply (minerals). As those other prices rise, the activity that produces those resources becomes more attractive relative to shooting rats."

Now if you want to point out that the clause "that to reduce inflation", does not use the specific 'monetary inflation' go ahead. Since you seem to have a reliance on the vulgar use of the term inflation, I suppose you can not be blamed too harshly.

Taxes eat inflation in eve.

Every trade on the market gets taxed. Every isk only last so long.

No bigger single factor in Eve on isk to product value.



Adunh Slavy has gone off the rails.

As sound as any part of any of his inflation talk is.....................

It's based on being a snob about how people uses a term.

People use to use it like this and that's how I use it.
The way us cool kids ment to use it before all the lamers started using it.
Now based on you using it the way the government tells you to use it and how they use it in reports and how it's said in other every other modern conversation you have on the subject you are automaticly wrong. Ask any fringe group I listed to see how wrong you are.

Ego much?



Using the term inflation the way the governments with central banks use the term *gaps* Eve has had over all deflation during the course of it's history.

Only snoby if you get offended, that is your problem.

All I do is try to bring some clarity to these discussions. Lots of people get it, some don't, like your self for instance. You elect to be a tool of government, that is also on you.

So this is what you need to stoop to is it?

So you want to blame me for your perceptions? And do so after all of your little snide remarks?

I have another word for you to learn, Hypocrite.

If you had been reading, and comprehending, you'd not ned to ask this question. I can only assume you are acting like a brick wall on purpose.

Never too late to expose your ignorance, pull up a chair.