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Economy and state?

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yangusbeef
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Post: #1
Economy and state?

http://www.ars-regendi.com/rid102093/state/189308
Economy is extremely unstable (as I predicted) due to, I assume, hyper inflation and high unemployment.
Debt is obscenely high
My economy crashed due to the obscene disproportionate ratio between imports and exports (exports was ~200 billion imports ~14 trillion) and I was, therefore, forced to seal off from imports. My economy went from -8% to +23%; however, it appears that it is crashing again.
I am putting 800 BILLION currency into health yet my Heath is EXTREMELY low. It makes no sense.
Automation is extremely high, which might be what is causing the high unemployment. I do not know how to lower it.
Union have increased by the millions.
My popularity is plummeting.

I may be able to salvage it, but some advice may help.

26.10.2015 00:51
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Lord Alexander
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Post: #2
RE: Economy and state?

The main problem is absolutely insufficient Money Supply. In this game it is not possible to have healthy economy when Gross Domestic Product is two times higher than Money Supply. Your state may get the chance to survive only if you will be able to grow the Money Supply ASAP.

26.10.2015 08:34
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Helsworth
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Post: #3
RE: Economy and state?

"Debt is obscenely high"

If you're referring to government debt, it's not at all obscene or high. You have a very high fiscal deficit, true. But you can tackle it via a combination of budget cuts & MR2. One of the reasons for your high unemployment is the basic income. The basic income is 2,370 while your living cost is 1,575. No wonder people have every incentive not to seek work. Your PE Basic income is more than 6 trillion dollars.
Indeed the MS is way too small compared to GDP. Again, Ars-Regendi never specifies what actual stock of money it measures in the MS tab. Obviously, accrued fiscal deficits would have to show up in the MS. Then again, M0 & M1 will always be smaller than actual GDP. I pointed out this issue on numerous occasions, but never got an answer for it from the devs.


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This post was last modified: 26.10.2015 10:15 by Helsworth.

26.10.2015 10:14
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