Dear Kapilands,
I suggest that you implement inflation in the game. The proceeds from this inflation will form a treasury that will sell bonds, Kapiland bonds, that it will in turn sell to the players so that the cash of the players can earn interest. Also, instituting inflation will put a new dimension to the game and that dimension is bankruptcy.
For example, a company has 100,000,000 in assets but has only 1,000 in cash. If there is inflation, this cash will turn to zero and the company will be bankrupt. Honestly, can a company have 100M in assets and have only 1000 in cash until the end of the year? This will promote proactiveness and more entrepreneurial spirit. You can set inflation rate at 5% (can you compute its equivalent per day?).
Instituting inflation can also spur treasury and put up the stock market. If the proposed treasury puts charges 5% of interest, it can sell bonds or savings account made available to those who have tons of cash and give 3% or 4% interest.
Thats all.
Introduce inflation in the game
Moderator: moderators
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Guest
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Guest
Inflation is already a part of the game, you can measure it by comparing prices through time (power and water are ideal products to analyse this because they are very basic needs)
it's not an instrument it comes there by itself. (Although instruments exist to manipulate inflation)
Everything gets more expensive since bigger companies all research better quality and therefore not making their own raw materials anymore, steel (q0), water, stones and power become less interesting to produce in the end and this will push the price as we need relatively more and actually produce less. (I predict that in a few months almost every NPC will be reached in market prices!) Look at the German version, they are 2 years ahead of us and if you compare prices there you will see: inflation all over the place. (I never played it and didn't even see it but players told me power and water price is around 0.14c there)
Another reason for inflation is the amount of money: In kapilands the amount of money circulating increases daily (even more than linear), you cannot compare this with the real world because the creation of money is limited there, only the central bank (who makes the money) can manipulate the amount of money circulating by giving guidelines to other banks, selling them certificates or adjust the minimum reserve quota of commercial banks. Also loans and rotation speed have their affect on the amount of money, but I'm going off topic now.
it's not an instrument it comes there by itself. (Although instruments exist to manipulate inflation)
Everything gets more expensive since bigger companies all research better quality and therefore not making their own raw materials anymore, steel (q0), water, stones and power become less interesting to produce in the end and this will push the price as we need relatively more and actually produce less. (I predict that in a few months almost every NPC will be reached in market prices!) Look at the German version, they are 2 years ahead of us and if you compare prices there you will see: inflation all over the place. (I never played it and didn't even see it but players told me power and water price is around 0.14c there)
Another reason for inflation is the amount of money: In kapilands the amount of money circulating increases daily (even more than linear), you cannot compare this with the real world because the creation of money is limited there, only the central bank (who makes the money) can manipulate the amount of money circulating by giving guidelines to other banks, selling them certificates or adjust the minimum reserve quota of commercial banks. Also loans and rotation speed have their affect on the amount of money, but I'm going off topic now.
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Guest
I guess I'm wrong in the sense that inflation should be a charge to the currency. Wel, how about your idea of taxing cash? Or better yet a minimum cash balance for those with certain amount of assets. If they lack the cash, they can loan from Kapilands treasury or from another player chargng interest or even use their assets as colaterals.
For example, with 10,000,000 assets the minimum cash balance is 500,000c. If I only have 400,000 on hand, I can loan form the treasury or from some other player the remaining required balance and pay interest for it.
My point is, I want us to build our banking system so as to reward and punish excessive risk taking or excessive asset accumulation. So i can loan against my assets.
For example, with 10,000,000 assets the minimum cash balance is 500,000c. If I only have 400,000 on hand, I can loan form the treasury or from some other player the remaining required balance and pay interest for it.
My point is, I want us to build our banking system so as to reward and punish excessive risk taking or excessive asset accumulation. So i can loan against my assets.
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Guest
Orval is right. However, there is always a limit:
How much are ready to pay them clients to sell those products in a store?!
For examples, my grocery's store clients for Orange at Q2, aren't ready to pay more than 8,10 up to it I need more than 24 hours to get money.
When a car (for example) will be at 200000 caps and the car dealer will need 5 or 6 days to get 5000 caps, I think the market will react differentely.
Just a warning for speculators, it is good to speculate but be extremely prudent, any reversal of the market could be extremely dangerous for your cash-flow.
How much are ready to pay them clients to sell those products in a store?!
For examples, my grocery's store clients for Orange at Q2, aren't ready to pay more than 8,10 up to it I need more than 24 hours to get money.
When a car (for example) will be at 200000 caps and the car dealer will need 5 or 6 days to get 5000 caps, I think the market will react differentely.
Just a warning for speculators, it is good to speculate but be extremely prudent, any reversal of the market could be extremely dangerous for your cash-flow.