Hydromancerx
C2C Modder
I like the Gold and Silver Standard. Perhaps other resources could be used like Clams, Pearls or Gems.
Economics Modcomp discussion
- Thread starter konradcabral
- Start date
Killtech
Discutator
maybe 'Gold Standed' and 'Silver Standard' should be combined into 'Noble Metal Standard'
Praetyre
King
What is "Market Enterprise"? Does it mean an advanced economy with no legal tender laws?
That's exactly it.
konradcabral
Prince
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.
Possibly, but i think the inflation mechanic itself, as it is every-turn cost to player, simulates player's purchasing power.
Listen, could you explain me how the civic bonuses work? I mean, are they applied to rough
production of cities, or with bonuses from bank etc.? I always thought (but never actually counted it) that if i have base production let's say 10 and build market (+25%) and bank (+50%), the bonuses just stick together and make +75%. If I am wrong, that explains why I always want to put +50%, where you put +10% 
I am asking this because +10% trade route yield seems to me like nothing, when you have already on the same trade route applied bonuses for customs house, foreign trade, sustained peace etc.
konradcabral
Prince
There's 
, that is pratically raw, with just a few additions, and there's , which is affected by banks, markets, etc. Look in the city screen you will understand it better.
, that is pratically raw, with just a few additions, and there's , which is affected by banks, markets, etc. Look in the city screen you will understand it better.
wolfigor
Emperor
hmmmm ... in the list i see "Derivatives".
The current economical crisis could be considered as a result of undisciplined use of derivatives... many of the modern economical "tools" have some negative back-effect.
Even something like stock exchange did lead to speculative effects that had very negative effect on the whole economy.
See tulip mania of 1636 for one of the earliest cases.
negative attributes to new techs and civics may be appropriate.
konradcabral
Prince
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.
Killtech
Discutator
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.
konradcabral
Prince
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.
Killtech
Discutator
you seem to have a quite an uncritical believe in derivatives and the new market. true, you cannot prohibit these nor is there any sense in thinking this way. the appearance of this financial tools might be just a natural phenomenon in large modern economies. these new features bring many positive and but probably at least as many negative aspects with them. so we just have to learn to deal with them. regulations might compensate some of the negative effects of the new market, but some will remain. i just hope in the end all this will bring us more good than the trouble it brought - IMHO this yet remains to be proven.
konradcabral
Prince
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?
Killtech
Discutator
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.
generalstaff
Steadfast
Also Copper; copper for coinage was important in the European trade with India (before Plassey, of course)
konradcabral
Prince
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?
Killtech
Discutator
well i'm not an economist so all my knowledge is based on newspaper articles and wikipedia. but yeah, i have general concept of what they are: rights to do something with the things they are derived from. but for what good they are it's hard to tell form me in some cases: derivates of the form of 'bets' on falling share prices. i really can't tell what good they serve. as for options i know how these can be utilized to minimize risks and stabilize prices.
