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  1. #11
    Player
    Capita's Avatar
    Join Date
    Jun 2011
    Location
    Gridania
    Posts
    318
    Character
    Souma Kisa
    World
    Sargatanas
    Main Class
    Archer Lv 50
    ITT: People who have no knowledge of basic economics and don't understand that leveling DoH and DoL doesn't increase the amount of gil being circulated into the economy.

    It's so funny seeing all these people trying to give snarky tips on how to increase personal gil, when the problem being addressed is deflation.

    Seriously, people. The problem isn't about making money by meeting supply and demand standards. It's the fact that at max level, the amount of gil exiting the economy entirely (through gil sinks like NPC services) is more than the gil being generated. This is a bad thing for the economy as a whole.

    Quote Originally Posted by Kletian View Post
    Every MMO in the past has had a problem with inflation. If FFXIV is the first to actually keep their money supply stable, it's a great thing.
    Sustained (controlled) inflation is a good thing.

    Small controlled inflation tends to be favorable both in real economies and virtual ones. Why? Because if deflation happens it creates a disincentive to use the currency.

    If I know that my dollar which can buy a widget today could buy two widgets tomorrow, I'd be a fool to buy a widget today. Hoarding currency becomes a viable option for wealth generation instead of actually using the currency by say investing in business (in the real world) or buying materials to level crafting to increase income potential (in the virtual world).

    If I have a desire to earn more Gil and I'm debating whether or not leveling a profession is a smart investment of my Gil, if the currency deflates, it may not make sense to bother with investing in leveling a profession since I'll experience real gains in wealth simply by hoarding my gil. Conversely, if there is a small but controlled level of inflation, it creates an incentive to spend on things like leveling professions, which improves the overall health of the economy.
    (3)
    Last edited by Capita; 09-05-2013 at 04:43 AM.