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A nation plagued by high inflation,skyrocketing living cost, etc

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Pasha99
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A nation plagued by high inflation,skyrocketing living cost, etc

So, I've been reasonably successful with my nation, Central Asia for some time, unti after I completed the cure for cancer project. Previously, in order to complete that project, I spend a lot of money, disregarding deficits and the like, in order to complete the project ASAP.

I was under the impression that my economic growth will let me cover that deficit pretty swiftly, which it kinda did, although the other indicators of my economy started going haywire. My living cost skyrocketed, while wage levels stagnated. My export value also stagnated, even dropped at some quarters.

I tried several ways to combat this, from reducing the tax rate on capital, raising the interest rate a bit, although the game strangely returned it to 1% almost every time I did so. I even enacted the free land reform to reduce my living cost, and still, any reducement in living cost caused by the reform is minimal. I'm at lost.

I always assumed that the culprit for this is my reckless spending on the cure for cancer project, when I'm running 1.5 trillion euros of deficit for some time. Is this correct?

Is there any way to get out from this problem? Preferably without cutting welfare, or privatizing a lot of state assets?

21.11.2016 07:58
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Lord Alexander
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RE: A nation plagued by high inflation,skyrocketing living cost, etc

Although Central Asia is probably not the tickles state your problem nevertheless seems to be very similar to the problem of CaiusFilimon. If this is indeed the same problem, then the Cure for cancer was not the main source of the problem, though it could exacerbate the problem.

Try to read the CaiusFilimon's threads, maybe the advices in them will be more helpful for you than they were for him:

Part 1, Part 2, Part 3, Part 4.

This post was last modified: 21.11.2016 16:26 by Lord Alexander.

21.11.2016 16:21
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yangusbeef
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Post: #3
RE: A nation plagued by high inflation,skyrocketing living cost, etc

Pasha99 Wrote:
So, I've been reasonably successful with my nation, Central Asia for some time, unti after I completed the cure for cancer project. Previously, in order to complete that project, I spend a lot of money, disregarding deficits and the like, in order to complete the project ASAP.

I was under the impression that my economic growth will let me cover that deficit pretty swiftly, which it kinda did, although the other indicators of my economy started going haywire. My living cost skyrocketed, while wage levels stagnated. My export value also stagnated, even dropped at some quarters.

I tried several ways to combat this, from reducing the tax rate on capital, raising the interest rate a bit, although the game strangely returned it to 1% almost every time I did so. I even enacted the free land reform to reduce my living cost, and still, any reducement in living cost caused by the reform is minimal. I'm at lost.

I always assumed that the culprit for this is my reckless spending on the cure for cancer project, when I'm running 1.5 trillion euros of deficit for some time. Is this correct?

Is there any way to get out from this problem? Preferably without cutting welfare, or privatizing a lot of state assets?


The high deficit caused the inflation, but everything else you see is a bug in the game, in which your economy essentially crashes late game.

21.11.2016 16:30
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Pasha99
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Post: #4
RE: A nation plagued by high inflation,skyrocketing living cost, etc

yangusbeef Wrote:
The high deficit caused the inflation, but everything else you see is a bug in the game, in which your economy essentially crashes late game.


I think I've seen several nations which regent reached the age of 150. Is this really a bug in the game, or something that is actually could be solved?


ZERO income from taxes on capital now. What happened?

Lord Alexander Wrote:
Although Central Asia is probably not the tickles state your problem nevertheless seems to be very similar to the problem of CaiusFilimon. If this is indeed the same problem, then the Cure for cancer was not the main source of the problem, though it could exacerbate the problem.

Try to read the CaiusFilimon's threads, maybe the advices in them will be more helpful for you than they were for him:

Part 1, Part 2, Part 3, Part 4.


Thanks for the reply!. So, I've read the threads, and the solution I've found is apparently to increase my subsidy, and implement the Liberalism reform. I don't think I could increase my subsidy, with my ridiculous budget deficit at the moment.

With the liberalism reform, I'm not sure. My play style has so far been Big Government all the way.

This post was last modified: 09.12.2016 14:13 by Pasha99.

09.12.2016 04:09
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yangusbeef
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Post: #5
RE: A nation plagued by high inflation,skyrocketing living cost, etc

Pasha99 Wrote:

yangusbeef Wrote:
The high deficit caused the inflation, but everything else you see is a bug in the game, in which your economy essentially crashes late game.


I think I've seen several nations which regent reached the age of 150. Is this really a bug in the game, or something that is actually could be solved?


ZERO income from taxes on capital now. What happened?

Lord Alexander Wrote:
Although Central Asia is probably not the tickles state your problem nevertheless seems to be very similar to the problem of CaiusFilimon. If this is indeed the same problem, then the Cure for cancer was not the main source of the problem, though it could exacerbate the problem.

Try to read the CaiusFilimon's threads, maybe the advices in them will be more helpful for you than they were for him:

Part 1, Part 2, Part 3, Part 4.


Thanks for the reply!. So, I've read the threads, and the solution I've found is apparently to increase my subsidy, and implement the Liberalism reform. I don't think I could increase my subsidy, with my ridiculous budget deficit at the moment.

With the liberalism reform, I'm not sure. My play style has so far been Big Government all the way.


After research through experimentation, I have determined that to solve your predicament you must lower Money Supply by huge amounts until it is at the real GDP value, lower than the non-inflation adjusted GDP. Although, looking at your state, that may take awhile, ahahaha! (See my state CSAA. Don't be fooled by the low growth, I have been lowering it below real GDP to study the effects of that as well, and it is wholly detrimental. For inflation GDP, however, not so much. I believed it may also make your currency more valuable, which will further improve inflation troubles. Strongly enough, I found it had little to _no_ effect on net income, it only reduced living costs.

09.12.2016 23:19
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