Aggressive Gold Sinks

[Zojha]

I think this is a wonderful idea with far-reaching benefits and frankly I think it's been well explained. I'd wager the naysayers either still don't understand somehow[...]

Or maybe they just have a higher understanding of economy.

It starts with the very basic question: Why do prices go up if there is more money around?
The answer is: Because people are able and willing to buy at a higher price.

That means that people need to buy items in order for them to affect prices. If people don't actually pay higher prices - for example because they aren't buying the items in the first place, which is common among self-sufficient people - then the effect the dead gil has on the prices is nil. If you aren't willing to buy an item at all, having more money isn't going to make you willing to pay a higher price for it and thus, prices may even fall in spite of inflation. Just look at all those items going for 1 gil on the market board, they are the best example. In spite of having the money, nobody is willing to pay much for them, so prices are down. And they stay down, for years on end, even though the monetary supply keeps rising.

What exactly do those super rich people buy to affect prices so much? I can tell you: Not much, or else they wouldn't be rich. They are largely self-sufficient and make their items themselves and make items for others on top of it, which causes money to accumulate at them. That's why they are irrelevant for pricing and sinking their gil is pointless as well. The gil sinks actually need to compromise people's ability or will to buy stuff to affect pricing, i.e. hit those who aren't self-sufficient and have so little money that they need to think twice about a purchase. Cruel, but that's how it is.

What is very relevant to pricing is competition on the market. To drive down prices, you want more people selling any given item to drive price competition via undercutting to lower prices. How? SE likes to make items obtainable via other means, like putting them into retainer ventures or hoards. That always causes prices to decrease dramatically, so long as the content is relevant. You can also make them obtainable from a vendor, tomes or whathaveyou, you can make the recipes easier, the mats more abundant or whatever. This is what you really need to do if you want to lower prices substantially.
Balmung's market board is a great example of that, much as crafters around the globe hate it for its undercutting tendencies.