Will one civ's currency strength (which I guess is the inverse of inflation) compared to another affect trade (either trade routes or resource/currency swaps)?
Opening post updated with sugarfree's and others' contribution. Please keep the ideas and corrections coming. I'm trying to design a formula for inflation.
hmmmm ... in the list i see "Derivatives".Yes, I'm one of the founders of the club "Cut down these bonus". But the majority of what I proposed are indisputable improvements invented by mankind. How give them negative bonus? But I was conservative in the bonus, of this you can't complain.
Only if I could simulate economic cycles. In the long-term, stocks and derivatives will always be a progress and a help to economy growth.
i doubt that. economy always tends to crash when people forget about what's a commercial papers and derivatives prices are based on in reality. then this papers prices start to develope independently from what they are based on and the marked tends to crash. it seems derivatives are a good tool to bring fortune to few speculants and ensure crashes. don't see their good for the economy. i mean they don't generate money nor do their partially independent prices help to spread money where it's most useful for the economy. but that's an analysis of an economic outsider with math & physics backgroud.
The welfare brought by speculation is being a counterpart to these who need it, the so-called secondary market. If speculation was prohibited, risk would be far more greater and people would do much less projects, and therefore economies wouldn't be this big, and we would be poorer. Remember that I spoke about long-term. Usury was a sin until people see the beneficts it brings. The same thing is the "unhappiness" brought by modern papers.
About the crashes, they aren't part of the derivatives' pure nature, and in 2008 it reflected the lack of proper regulation, mostly by the US.
This has nothing to do with belief, less with uncriticism. I do not know enough about derivatives to prove it to you, neither would have the time to do it. My point is: derivatives' and stocks' beneficts are permanent, and the harms are temporary, cyclic. If wasn't that way, the world would simply banish them after 2008, don't you agree?
banish? you cannot banish something if everyone posses so much of it already. it's like forbidding a material of with the carrying walls of a house are build off - after the house is finished.
furthermore which effects of derivatives are permanent and which are temporary is not yet completely know i'd say and on long term it certainly cannot be calculated. all we can make is assumptions.
You are misunderstanding me, and partly is my fault. Let's start from the beginning: do you know how derivatives work and for what does it serve?