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What's happening to my nation? - Pasha99 - 20.04.2016 07:20

This question is about the nation Maghreeb.

Okay, so I've got pretty good marks on safety, education and culture, quality of life, and rights and chances. I've even managed to earn more than what I spend, largely thanks to my export driven economic growth that could be largely attributed to my monetarist policy of expanding the money supply by 3%-5% per year, although I did lower the interest rate during the initial years of my nation, but rarely after that.

I've also put a heavy emphasis on PE Health, Family, and Education. Unemployment levels were negligible, at 0.28%, and I suspect this unemployment were mostly frictional unemployment. I've also strongly encouraged increases on the birth rate, and have a fairly open immigration policy. Yet, during these past few quarters, I've seen my migration rate increased and my saving ratio dropped to -0.002%.

Now, that may look slight, but I suspect that this also mean that my current consumer spending is not primarily driven by income, but by credit. I begin to fear a bubble in my economy somewhere in the future. Is this a problem? If it is a problem, how do I fix it?


RE: What's happening to my nation? - Helsworth - 20.04.2016 07:36

As far as I know, AR doesn't model cyclical behavior & I do know that it doesn't incorporate the sectoral balances.
Don't read too much into the saving ratio. Most of the times it moves on its own. And since you have net exports anyway, you can entertain a negative saving ratio without any sort of problem. So long as you keep the government debt below the arbitrary 250%-300% point, you won't have problems with deselection (if you social indexes are good enough, and yours are).


RE: What's happening to my nation? - Pasha99 - 03.06.2016 00:15

I recently enacted the basic income reform to make my economy more insular, and apparently....it didn't go well. Any advice to return my economy to normalcy?


RE: What's happening to my nation? - Helsworth - 03.06.2016 09:11

Pasha99 Wrote:
I recently enacted the basic income reform to make my economy more insular, and apparently....it didn't go well. Any advice to return my economy to normalcy?

Yes, that's been my experience too with this reform. It decreases private consumption & pisses off the population. It could use many tweaks.