Economy, inflation, and the gold standard

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Economy, inflation, and the gold standard

Post by acsempronio on 5/24/2011, 1:01 pm

This is by far not a new idea.

1. Gold has almost no use for construction short of powered rails.
2. The inclusion of /shop increases inflation as coin is simply generated arbitrarily.
3. Gold should be used as a gold standard with /shop acting as a central reserve; gold is sold to /shop for coin, infusing the economy with coin and can be purchased from the shop or held on to for it's limited construction potential.

Pros:
this would encourage mining (the point of the game) and foster competition for resources.
This would make coin more valuable and set a n exchange rate for non gold items.
This would allow player t conduct business two ways, other through coin, minted by the /shop and gold bars.

Cons:
spawned gold. There is a simple solution... Prevent spawning of all gold.
Existing coin. Existing coin shouldn't be diminished, but from this point forward all coin holds a gold value.
Amount of actual gold. This system only works when there is a finite amount of gold, or something close to it. If /shop can't keep track of the amount of gold that has been bought and sold from it, then the system sort of does't work anymore.

Other thoughts: is there a mine craft economy mod that will do this and additionally, raise or lower the value of gold based on the amount in the reserve or simply keep track of current reserve inventory?

Of course the ability to spawn ruins this as it does now if people try to sell spawned items. If the spawners act honestly, then the system can work.

(I only use spawning to construct town-related buildings and assist in others in similar such projects.)


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Re: Economy, inflation, and the gold standard

Post by Ariley on 5/24/2011, 1:08 pm

Correct, it's not a new idea - it's basically the real world economy. But in my opinion, we're doing alright.

I agree with what you're saying though. I will look in to mods that keep track of inflation and some sort of reserve. However, preventing the spawning of gold could be a little tricky. It can be done though.

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Re: Economy, inflation, and the gold standard

Post by dtfgator on 5/24/2011, 1:10 pm

It's an interesting idea, but I don't think we will be changing our economy system any time soon. It's like the saying, "If it ain't broke, don't fix it". At the moment our economy system works pretty well, so I don't think it will be changed.

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Re: Economy, inflation, and the gold standard

Post by Ariley on 5/24/2011, 1:11 pm

dtfgator wrote:It's an interesting idea, but I don't think we will be changing our economy system any time soon. It's like the saying, "If it ain't broke, don't fix it". At the moment our economy system works pretty well, so I don't think it will be changed.

Well here's the thing. It is a little broken, but not terribly so. It's worth talking about though.

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Re: Economy, inflation, and the gold standard

Post by dtfgator on 5/24/2011, 1:12 pm

hence, "pretty well". It could use a few tweaks, but nothing like a major overhaul to back every coin in gold.

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