If SE is taking away my hard work...

[viion]

The problem is real world economies and "SE" or any video game eoconomies are really not much different. You can look at any economy in any game or any place on earth and the basic core principles are the same.

Economy in the real world is maintained, it is actually very carefully monitored in a sense that some areas of the market are strictly forbidden to undercut (not all, SOME), and its illegal for price fixing, it is then heavily regulated by many government services that the industry scales with the redenomination. When the event occurs, a place selling cars did not keep them at the same value, or reduce to 1/5th, by government control they were kind of "forced" to reduce to 1/10th in order to maintain balance.

In-Game, this is not the case, there is NO one to maintain balance but us, there is NO one to control undercutting, price fixing and scalability but us.

It is very different. You can read up about situation where this has caused financial crisis in countries.

[Rizon]

Economy in the real world is maintained, it is actually very carefully monitored in a sense that some areas of the market are strictly forbidden to undercut (not all, SOME), and its illegal for price fixing, it is then heavily regulated by many government services that the industry scales with the redenomination. When the event occurs, a place selling cars did not keep them at the same value, or reduce to 1/5th, by government control they were kind of "forced" to reduce to 1/10th in order to maintain balance.

In-Game, this is not the case, there is NO one to maintain balance but us, there is NO one to control undercutting, price fixing and scalability but us.

It is very different. You can read up about situation where this has caused financial crisis in countries.

you said it much better then I did. Thank You.

Alhanehem...if you want to get an idea of the effects of an unregulated economies read up on what led up to the Great Depression. The things you mentioned in your OP actually happened in the late 1920s, especially in the old Weimer Republic of Germany.

[Felis]

you said it much better then I did. Thank You.

Alhanehem...if you want to get an idea of the effects of an unregulated economies read up on what led up to the Great Depression. The things you mentioned in your OP actually happened in the late 1920s, especially in the old Weimer Republic of Germany.

The hyperinflation 1923 was because the goverment pumped too much money in the system, not because they took money out. Germany drowned in money.



I bet after the hyperinflation the people weren't angry that they didn't have a 5,000,000,000 Reichsmark bank note in their purse anymore to buy bread with it.

[Alhanelem]

[QUOTE=Felis;852600]The hyperinflation 1923 was because the goverment pumped too much money in the system, not because they took money out. Germany drowned in money.

/QUOTE]
ohmygosh, I think someone gets it, or at least understands history and economics.

Germany used redenomination as a tool to compensate for hyper inflation caused by printing money. ("Hmm, what can we do to save our war-ravaged economy? I know, let's print more money!") By use of redenomination, the problem of needing an excessive number of currency notes for a single item was solved. Basically, the same sort of thing is happening here. What's the point in using huge humbers when you don't have to. Because the only items with a value in the single digits was removed, they can reduce the numbre of digits needed for everything else. That's the only thing this change aims to do. Any other impact on the economy simply can not be predicted simply because the items in general may change substantially in supply and demand, and new items will be interoduced and yada yada yada.
I bet after the hyperinflation the people weren't angry that they didn't have a 5,000,000,000 Reichsmark bank note in their purse anymore to buy bread with it.[

[Preypacer]

[QUOTE=Alhanelem;852635]

The hyperinflation 1923 was because the goverment pumped too much money in the system, not because they took money out. Germany drowned in money.

/QUOTE]
ohmygosh, I think someone gets it, or at least understands history and economics.

Germany used redenomination as a tool to compensate for hyper inflation caused by printing money. ("Hmm, what can we do to save our war-ravaged economy? I know, let's print more money!") By use of redenomination, the problem of needing an excessive number of currency notes for a single item was solved. Basically, the same sort of thing is happening here. What's the point in using huge humbers when you don't have to. Because the only items with a value in the single digits was removed, they can reduce the numbre of digits needed for everything else. That's the only thing this change aims to do. Any other impact on the economy simply can not be predicted simply because the items in general may change substantially in supply and demand, and new items will be interoduced and yada yada yada.
I bet after the hyperinflation the people weren't angry that they didn't have a 5,000,000,000 Reichsmark bank note in their purse anymore to buy bread with it.[

"But... but... but... People might still try to sell things at 1.0 prices! Then, even if people had more than enough in 1.0 to buy it, they won't be able to in 2.0! Or, they will, but it would eat a huge chunk of their gil!"

Which is why anyone trying to sell their items at "1.0 prices" are going to find themselves sitting on them for a long time. People will see the prices, realize they're charging far too much and won't buy them. Meanwhile, people who are capable of adjusting to the new setup will modify their prices and bring them down to a more reasonable one. The people asking more reasonable amounts will have a much better chance of selling theirs much more quickly than the person still clinging to the past.

If you buy items at 1.0 prices, you're a fool and are only helping justify that person asking so much for it. Items are worth whatever people are willing to pay for them.

It'll take time for items to find their new/modified value in the new economy, but it will all fall into place as people start buying and selling actively again and items find their "sweet spot", given the supply, demand and perceived value of those items based on rarity, stats, etc.

That's the way it's always worked. That's the way it will continue to work.

People are dreaming up these hypothetical nightmare situations that simply have no precedent, taking them to extremes, and then reacting to them as though they're inevitable.

Does anyone remember the price of items in FFXI when the RMT was at its worst for a few years there? Prices were beyond absurd. It was almost impossible to get by even as a brand-new player because even lowbie gear was priced far too high for any new player to afford. Then SE came in and started cleaning up the game by fighting the RMT and removing excess gil from the economy - in the billions as I recall at one point.

What happened? Did the economy freeze up because suddenly there wasn't enough gil and people couldn't afford to buy anything? No. The economy adjusted. AH prices were brought down to reflect the more normalized amount of gil now circulating in the game.

People adapted.

Same thing will happen here.

[Alhanelem]

Economy in the real world is maintained, it is actually very carefully monitored in a sense that some areas of the market are strictly forbidden to undercut (not all, SOME), and its illegal for price fixing, it is then heavily regulated by many government services that the industry scales with the redenomination. When the event occurs, a place selling cars did not keep them at the same value, or reduce to 1/5th, by government control they were kind of "forced" to reduce to 1/10th in order to maintain balance.

In-Game, this is not the case, there is NO one to maintain balance but us, there is NO one to control undercutting, price fixing and scalability but us.

It is very different. You can read up about situation where this has caused financial crisis in countries.

It is not very different. SE does monitor its economy as does every company monitors the eoconomy of their own game.

Price fixing might not be "illegal" but that doesn't mean it's easy to get away with. It can only easily happen with extremely rare goods that only a few people cposess and thereby can control. More typical commodities cannot be controlled this way.

Price fixing won't be any more or less of an issue than it is today. Undercutting in fact will prevent any real issues with gouging. This stuff is all a non-issue. The key similarities between this economy and any economy are the very reasons why this is not a big deal and people are blowing itway out of porportion.

because so many things are going to change when 2.0 comes out, all kinds of things will change in the economy as well- it is pointless to even try to predict how people will behave.

[AzuraSin]

Economy in the real world is maintained, it is actually very carefully monitored in a sense that some areas of the market are strictly forbidden to undercut (not all, SOME), and its illegal for price fixing, it is then heavily regulated by many government services that the industry scales with the redenomination. When the event occurs, a place selling cars did not keep them at the same value, or reduce to 1/5th, by government control they were kind of "forced" to reduce to 1/10th in order to maintain balance.

In-Game, this is not the case, there is NO one to maintain balance but us, there is NO one to control undercutting, price fixing and scalability but us.

It is very different. You can read up about situation where this has caused financial crisis in countries.

I feel like I have to point out that this re-denomination is exactly the kind of maintenance/regulation that you're saying In-Game economies don't have.