Post Reply  Post Thread 

Money Supply

Author Message
Sega
Junior Member
*


Posts: 27
Words count: 4,835
Group: Basic
Joined: Sep2013
Status: Offline
Reputation: 3
Experience: 121
Glory Points: 10
Medals: 1

Post: #1
Money Supply

What exactly is money supply? Could I tap into my country's money supply to aid my economy/fund things? And if so, how would it be done. In the budget change, would it be a + or a - ?

20.11.2013 03:36
Find all posts by this user Quote this message in a reply
Helsworth
Heathen
****


Posts: 8,856
Words count: 1,597,963
Group: Super Moderators
Joined: Nov2008
Status: Offline
Reputation: 146
Experience: 859
Glory Points: 260
Medals: 11

Post: #2
RE: Money Supply

Sega Wrote:
What exactly is money supply? Could I tap into my country's money supply to aid my economy/fund things? And if so, how would it be done. In the budget change, would it be a + or a - ?

You need to manually adjust the MS, in order to allow for your economy to grow. Depending on what template state you're playing, I would keep the GDP to MS ratio about 1-1.1 or 1 to 1.2. But if you're playing the USA template, you can far outpace the GDP without concerns of devaluing your currency by too much.


https://www.patreon.com/SerbanVCEnache
20.11.2013 08:18
Find all posts by this user Quote this message in a reply
Sega
Junior Member
*


Posts: 27
Words count: 4,835
Group: Basic
Joined: Sep2013
Status: Offline
Reputation: 3
Experience: 121
Glory Points: 10
Medals: 1

Post: #3
RE: Money Supply

Helsworth Wrote:

Sega Wrote:
What exactly is money supply? Could I tap into my country's money supply to aid my economy/fund things? And if so, how would it be done. In the budget change, would it be a + or a - ?

You need to manually adjust the MS, in order to allow for your economy to grow. Depending on what template state you're playing, I would keep the GDP to MS ratio about 1-1.1 or 1 to 1.2. But if you're playing the USA template, you can far outpace the GDP without concerns of devaluing your currency by too much.


Alright.... but to be honest, you didn't really answer my question, I mean no rudeness.

21.11.2013 01:38
Find all posts by this user Quote this message in a reply
Helsworth
Heathen
****


Posts: 8,856
Words count: 1,597,963
Group: Super Moderators
Joined: Nov2008
Status: Offline
Reputation: 146
Experience: 859
Glory Points: 260
Medals: 11

Post: #4
RE: Money Supply

It's the total amount of monetary assets available in an economy at a specific time.
M1- is defined as the sum of currency held by the public and transaction deposits at depository institutions (which are financial institutions that obtain their funds mainly through deposits from the public, such as commercial banks, savings and loan associations, savings banks, and credit unions).

M2- is defined as M1 plus savings deposits, small-denomination time deposits (those issued in amounts of less than $100,000), and retail money market mutual fund shares.

As you may have noticed, Ars-Regendi does not specify if it's M1 or M2. Nonetheless, you do have to manually increase the MS in order to encourage and preserve economic growth. You act not only as the regent, but also as the central bank.


https://www.patreon.com/SerbanVCEnache
21.11.2013 08:56
Find all posts by this user Quote this message in a reply
Sheep
Admin
******


Posts: 13,201
Words count: 692,156
Group: Admin
Joined: Jan2008
Status: Offline
Reputation: 252
Experience: 5731
Glory Points: 195
Medals: 8

Post: #5
RE: Money Supply

A common strategy is to keep money supply (MS) slightly above Gross domestic product (GDP). MS can be manipulated directly during a budget change. Additionally nominal interest, new indebtness and other values affect MS growth.


21.11.2013 16:35
Find all posts by this user Quote this message in a reply
pp789
Junior Member
*


Posts: 47
Words count: 12,198
Group: Basic
Joined: Oct2013
Status: Offline
Reputation: 1
Experience: 16
Glory Points: 0
Medals: 0

Post: #6
RE: Money Supply

Why should you increase the money supply?
I'm keeping my money scarce and at least economically speaking both of my states are doing better than the average.

(unless this has some kind of effect on happiness, which I don't get why would it have)


[People] change their rulers and the public measures are changed, but it's only a change of one scheme of emolument to the rulers, for another.
-John Francis Mercer, 14.8.1787 at the Constitutional Convention in Philadelphia.
22.11.2013 00:35
Find all posts by this user Quote this message in a reply
Sheep
Admin
******


Posts: 13,201
Words count: 692,156
Group: Admin
Joined: Jan2008
Status: Offline
Reputation: 252
Experience: 5731
Glory Points: 195
Medals: 8

Post: #7
RE: Money Supply

There should be no direct effect on happiness. Surprising indirect effects are always possible, given how interwoven the values are.

And I meant it like I said it, it's a common strategy - not necessarily the best you can do. "Best" depends on your goals, anyway.


22.11.2013 01:48
Find all posts by this user Quote this message in a reply
TinaNamdev
Junior Member
*


Posts: 2
Words count: 0
Group: Basic
Joined: Dec2018
Status: Offline
Reputation: 0
Experience: 0
Glory Points: 0
Medals: 0

Post: #8
RE: Money Supply

You need to manually adjust the MS, in order to allow for your economy to grow. Depending on what template state you're playing, I would keep the GDP to MS ratio about 1-1.1 or 1 to 1.2. But if you're playing the USA template, you can far outpace the GDP without concerns of devaluing your currency by too much.

This post was last modified: 01.01.2019 08:46 by TinaNamdev.

25.12.2018 07:35
Find all posts by this user Quote this message in a reply
Post Reply  Post Thread 

Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  Velocity of money Ajay Alcos 4 836 29.09.2017 10:55
Last Post: hamma13
  Money Reform I Pasha99 12 1,882 29.09.2017 09:02
Last Post: hamma13
  Money Reform II and National Credit Akeron 3 605 01.07.2017 23:41
Last Post: Akeron
  Unemployment, Excise Taxes and Money Supply Razick 5 1,596 30.06.2017 13:49
Last Post: JulijsCezars
  Money Reform II and Paying off Debt RinNatsume 3 1,164 12.11.2014 11:04
Last Post: Helsworth
  Trade surplus and Money supply, Inflation FirstSecretary 11 2,509 05.03.2014 22:00
Last Post: Helsworth
  money supply & economics prepangaia 12 2,216 11.01.2013 11:05
Last Post: Helsworth
  What do I do with my currency/money? JasonQu 1 767 02.11.2012 11:34
Last Post: Helsworth
  How to make money madhousecomplex 3 851 07.08.2012 19:51
Last Post: Helsworth
  Money Supply ryacko 5 1,435 01.06.2012 07:22
Last Post: JosephLJ

View a Printable Version
Send this Thread to a Friend
Subscribe to this Thread | Add Thread to Favorites

Forum Jump: