How To Make The Inflation Die Down Faster

In case you dont know: Mythic Prices always fluctuate and before and shortly after an update mythics cost more. Just wait for 2 months or so and the "normal" mythics like Lament will cost like 2 stx again and the Ignis and Monster Hype will also go away.

 

That's... the point of the policy irl.

TLDR: The policy is up for 2 reasons irl, to reduce the money that are made and to discourage people from trading.

Okay so first of all, there are two kinds of money, High Power Money (Or base money) and Market Money. High Power Money is the sum of every real emeralds in Wynncraft combined. Market Money, however, is probably 10 to 15x the amount of HPM.
Why is this a thing? Well let's say you buy a Warchief for 32LE, easy math. You give 32LE away and you get a Warchief back. However those 32LE are not gone for good. The player that sells the warchief can use the money and buy a godly Nepta, or whatever is worth ~30LE, because 1 emerald can be used multiple times. From 2 transactions, you get 32+30=62LE in the economy. From 3 transaction you will get 1stx and like 25. This process continues until every single emerald in the 32LE batch is gone because of taxes. Using formula (cr+1)/(cr+tax) with cr=0 (It's a variable for a different situation) we can see the result is 20, which means there are 20x the amount of emeralds going through the economy than the amount of actual, physical emerald every player have.
Now what if we raise the tax to say 10%? Plug 10% into the formula and the money multiplier dropped to 10x, which means the market will have half the emerald it had before the tax raise. This is a way to control inflation by governments, although rarely used.
Now I did say the money multiplier is 20x, however the actual Market Money falls between 10x to 15x because there are people that after selling their mythics, they decide to keep the money, or spend it in NPC booths. If I spend 12EB to buy a LI pass, that 12EB is gone and can't continue the cycle. However 10x to 15x is still a rediculous multiplier, and measures must be taken to reduce it.

 

Ice Bear says the problem with using real life policies for Wynncraft is that the two are very different. Ice Bear says Wynncraft is a small economy and actually faces deflation for the most part which is extremely rare in real life so a lot of economic policies simply will not work for it. Ice Bear says the main problem Wynncraft is facing which is causing the massive inflation is the amount of counterfeiting which is huge relative to the size of the economy in the real world it happens at such a small scale and it is so hard to do that it really doesn’t affect anything however, for Wynncraft it is very impactful. Ice Bear says the economic policy is very simple here. Prevent duping.

 

Psst, wanna trade your archangeLs for a stack of rymek liquified gold?

 

Step 1: implement communism
Step 2: die

 

just start using zhight money as currency smh

 

our money

 

I’m not saying everything is gonna work, I’m saying we can look to the real world for inspiration when we run out of ideas