Jita Park Speakers Corner

I LOLed.

Now I can imagine Mittani sitting on a throne in a large room and a long table with ministers and advisors before him :-)) All clad in fur and metal.

Inflation is defined by a general rise in prices over time, a non cyclical increase. If you want to define it as something else I suggest you go and call every professional economist an idiot for using 'inflation' in an overbroad manner.

Now I believe in your clumsy and roundabout way you are citing Keynsian economic theory which provides many mechanisms for disconnecting an increase in monetary supply from inflation, hence your comment that deflation is possible.

Possible!

However that is not observed, we are seeing across the board price rises for every reasonable commodity basket.

Furthermore, your argument that any increase in the price of PLEX is irrelevant because everyone is earning more money simply smacks of 'F*** you, got mine'. Those poor new players can only dream of farming Incursions, there's been no significant change to a new pilots abililty to make isk, and with their limited skill sets they can't exploit the myriad streams of income that a mature player can. With the prices of everything high getting that first battlecruiser is now a much bigger step than it once was.

Unlike you Skex I have not let my hundreds of billions of isk blind me to the plight of the newbie.

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No the general rise in prices is an affect of an increase in the the volume of currency relative to productivity. Of course one can have inflation without an increase in the currency base if the overall economy shrinks without a corresponding reduction in currency.




No I'm trying to get you and others like you to understand that an increase in the money supply does not automatically equal inflation. To impress upon you that there are two factors involved in whether or not inflation exists, money supply and over all economic productivity. Changes in either affect prices. You and the other chicken little's clucking away about inflation are falling into the typical supply-sider trap of forgetting that there are more than one factor involved.

Supply of money is not the sole determiner of value, you also have work, materials, and technology that factor into the equation. You also have to consider the psychological aspects of consumption. Contrary to the supply side myth just because you build it doesn't mean there is a market for it.

Consider plex, people like yourself try to point to it's price increase as evidence for your claims of inflation, however to accept that fact you have to ignore the fact that there are external factors that affect the demand for plex. A large one would be the over all state of the external economy. High unemployment in the real world will natural translate into more demand for Plex in the game as more and more people faced with choice of paying for groceries or paying for their subscription with their cash go for the third option of paying with plex.

That increase in demand puts upward pressure on the price. Also thanks to those same external economic factors fewer players will have the real world cash to buy GTC's to convert and sell so you get a double whammy of increased demand and reduced supply that are not in any way related to the supply of isk in the overall EVE economy.






No the I got mine attitude is coming from people who have already had the opportunity to milk the existing system and want to nerf the mechanism in order to protect their wealth by denying those who come after them the ability to use that mechanism.

Newbies do not remain newbies eventually those newbies who are today running L1s will be running incursions or clearing plexes in null and selling phat complex loot to incursion runners.

And while it's true that new players have a lower earning potential than older player they also have lower costs. Clones cost nothing to replace ships and fittings tend to be cheaper. The skill books they are buying are less expensive. The list goes on and on.

Also I question your contention that the overall increase in prices can be attributed to "inflation.

If you look at the over all market you'll see that things remained pretty flat up until Dec 20th hmm what happened around that time? Oh yeah Dekco invaded branch and Maelstroms and Drakes and other assorted shinnies have been steadily welping ever since.

Think about this a minute. How long have people been crying about inflation (hint pretty much since I started playing) for how long have incursions been spewing their supposedly prodigious amounts of isk into the economy? Yet the first time we see any actual manifestation of anything resembling inflation just happens to coincide with the start of a major null sec war.

Might make one think that the current state of prices might just be related to something other than the isk supply eh?

Oh if I had hundreds of billions socked away I'd probably be crowing about the threats of inflation too. As it stand I'm broke so inflate away my friend inflate away. More isk to incursion runners means they have more isk to buy my vindicator BPs.

Oh yes, I saw this coming, and it's been pretty lucrative for me.

Regardless, I at no point argued for the mechanism driving the inflation, indeed if you look I cited a number of claims that people make, none of which I believe are proven by any means. I concede that there's certainly a strong argument that inflation is not happening, indeed, there is a valid argument that the price increases are good for the health of the Eve economy.

Of all the candidates standing I believe only the goon candidates, supported by their economics experts, have demonstrated any ability to think about the Eve economy as a whole.