So a lot of people have been declaring that there is too much inflation in HelloMiners and things need to change. But where is the inflation?
Here’s a quick definition of inflation:
This is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country. (IMF, 2022)
A quick search of posts and you can see that players are referring to how rich players are as some kind of indicator of inflation, yet the prices of goods and services still stagnate.
Money supply is defined as the following:
The money supply is the total amount of money—cash, coins, and balances in bank accounts—in circulation. (Federal Reserve, 2015)
So what are common causes of inflation:
- Growing Economy
- Expansion of the Money Supply
- Government Regulation
- Managing the National Debt
- Exchange Rates
We only need to concern ourselves with the first three bullet points.
Take for instance government have regulated that the price of wild land be 10f / block. We are seeing more and more players who come and go but we have seen a shrinkage in the player base so wealth can only really be measured by those players that are active when we compare and the longer these players are around, the more wealth/money supply they may have accumulated.
As in real life you will see a mixture of players that are wealthy and those that are not.
But again, where is the inflation?
EconomicsHelp.org says this:
In theory, there is a strong link between the money supply and inflation. If the money supply rises faster than real output, then prices will usually rise.
We are seeing player cities up their land price. Some 20F / 25F per block (up to 79% increase on several years ago). Also government cities have set their land price at 20F per block.
When setting up shops many players tend to look around to see what their competition sells goods for. Some who can mass produce using Slimefun can out-beat and lower prices, so surely there is some deflation too?
One risk when setting prices of shops is making sure you are not competing with the Government Trade Centre when it comes to where players buy products. Could the GTC be restricting or controlling inflation on the server? Should the government be constantly regulating it to check the average prices across the server periodically and adjusting? Is inactivity naturally counter-balancing by preventing inflation?
What are your thoughts? What inflation have you seen? Are things cheaper or more expensive?