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Inflation

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velazquez
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Post: #1
Inflation

I'm a new player. I'm currently trying to increase my economic growth, but I have oddly high inflation. Currently in this quarter (winter 2000) I'm going through stagflation. I increased government spending for almost all categories for this quarter and reduced taxes. I'm afraid to lower the interest rate since I don't know whether or not the private sector interest rates will properly automatically adjust. I increase my government spending by 2% a year. Is this causing the inflation? Should I lower or raise my interest rate? Or is it that I got the random event of drought?

(my state is Pacifico look there for data)

This post was last modified: 30.04.2020 17:27 by velazquez.

29.04.2020 23:53
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callycalcal2
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RE: Inflation

you should lower interest rates to 1-2% this should increase money supply and you have low growth and high ish inflation cause your money supply is not keeping up to your gdp look at my state after doing this usa5 you can after getting money supply up increase Infrastructure spending and admin and you could cut taxes tog bye the if you dont keep money supply at 100+ of gdp it will cause recessions and depressions when increase money supply and be careful when increase money supply manually with budget as it lowers the value of your currency and might increase inflation at so only increase manually at 0 to 4% only when money supply is under 100% you should do this i think

This post was last modified: 01.05.2020 07:43 by callycalcal2.

01.05.2020 07:02
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velazquez
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Post: #3
RE: Inflation

Should I rely on my gdp or real gdp to determine the money supply?

01.05.2020 19:33
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callycalcal2
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RE: Inflation

for money supply you need to base it off gdp not real gdp you should also cut defense spending as that is only useful in world games where you can attack players you should cut that as much you can and invest in education your health care your family your infrastructure your cut taxes your pay of debt with money you save form PE defence

This post was last modified: 02.05.2020 04:04 by callycalcal2.

02.05.2020 03:52
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velazquez
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Post: #5
Smile  RE: Inflation

Thanks for the information! everything just clicked in my head all at once!

02.05.2020 21:49
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