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Severe recession, along with wonky rights

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Kickass Q.
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Post: #1
Severe recession, along with wonky rights

Just figure I'll copy my post in the nations forum. If this appears to be a glitch, let me know, and offer a reset if you could to before everything went wonky (to use the technical term).

My state Apocalypticalia (was trying to set-up a quasi-fascist state just for the hell of it) has gone into an absolutely insane recession and I don't know why. In this quarter alone it's hit -9.58% real growth. In the last year it's gone from a trade surplus to a deficit (with my exports being less than half what they were) a budget surplus of 60 billion to a deficit of -5 billion (I'm projecting -65 billion or so next quarter), and I've lost around a quarter of all my nations capital. The giant drop under regent tab is where it all went crazy. in quarter 138 I reduced income taxes and increased welfare, and did nothing else that major in the budget, in 139 I picked the full-introduction option for "advanced robotics", and in 140 I chose to let people's banking information be publicly traded. I'm wondering if this might be a glitch (my civil rights metric rolled over far into the negative), or if there might be a reason for this? I was initially thinking a bubble burst, but at this point that'd have had to have been one helluva bubble lol.

25.03.2011 00:11
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Bubboleth
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Post: #2
RE: Severe recession, along with wonky rights

I have something similar with two different listings for economy growth.
From Overview:
Yearly average economy growth 3.85 %

From Economy Details:
Economy growth [?] -5.60 %

25.03.2011 06:41
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Helsworth
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Post: #3
RE: Severe recession, along with wonky rights

In economic details you are shown the quarterlies.


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25.03.2011 08:54
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Bubboleth
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Post: #4
RE: Severe recession, along with wonky rights

Even still, I doubt it would be that negative due to lowing taxes, increasing spending, and increasing the money supply.

All those tend to increase economic growth (at least in the real world) so I suspect this is a bug.

25.03.2011 09:35
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Helsworth
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Post: #5
RE: Severe recession, along with wonky rights

Did you also lower the nominal interest? Also what exactly did contract, whas it gross investment, consumption, exports? Or were they all affected? I am asking because sometimes when lowering taxes people and business tend to save more, untill they figure out what the intention of government is and figure out the stable point on the market, in which it's better to go back doing what they did or change pace. Don't pay too much attention to your quarterlies, because a lot of other factors are involved, if you get an anual negative growth than there is reason to suspect a bug. Don't forget that increasing the money supply may have a mild effect, a profound effect or no effect at all and the time you can begin to see effect varies and it is not always over night. In the long run the USA template requires you have a considerable bigger MS than GDP if you are to have a balanced currency.


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This post was last modified: 25.03.2011 13:04 by Helsworth.

25.03.2011 12:55
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Bubboleth
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Post: #6
RE: Severe recession, along with wonky rights

Consumption, and exports both expanded. Gross investment also expanded.

I did not change the interest rate (it is around a 6% like always). The savings rate is 6.52 which would lead to a higher rate of investment as well.

The thing that really makes me suspect a bug is that the average country's growth is -1.35%. My economic indicators are better than average but in both cases growth is negative.

25.03.2011 18:31
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Kickass Q.
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Post: #7
RE: Severe recession, along with wonky rights

In my case gross investment increased as per normal, but exports dropped enormously, and I do believe private consumption as well. Any word on the bug evaluation?

27.03.2011 20:53
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