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In ES2 vanilla it should be set to normal game speed by default.
Edit: You can switch game speed in new game lobby, before starting game.
Does it add balance to the game?
There are many factions and play styles that just dont work in the base game. This game does a great job making them all competitive (At least when used by a player).
The Mod is great, they reworked many things to lessen the galaxy generation random and tried to "help" some races so that they are all at least viable. They also added some fun things, like being able to build merc ships. Overall it is a good mod for multiplayer. For single player the game is already easy enough without adding more layers of easiness, but it is not the mod's fault that the vision and/or capabilities or the ES2 devs stopped at the races' creation and the galaxy generation tool, so that by the time you reach your colonization limit there is nothing left to do because they didn't code anything beyond expansion for AI.
If they were to release documentation about the AI, I'm sure people would try to fix the AI side of things.
Economic factions that generate a great deal of dust increase inflation over time, but this impacts them less because they are the ones generating it and have plenty to spare. When you aren't making as much dust and another empire is making a TON suddenly you aren't going to be able to afford anything because inflation is taking much bigger of a cut.
ESG latest version tinkered with Markets in 2 ways: 1) the resources market stock gets replenished quicker so you can actually buy luxuries and strategics more reliably; and, 2) The AI sells resources they don't use instead of hoarding them, which floods the market lowering the prices, so if you are playing vs AI the cheese tactic of selling everything as way of dust generation is greatly reduced, which is a good thing.
Lumeris literally have tech and traits that reduce the Inflation impact on them.
You might as well be arguing that war significantly impacts Cravers because creating and maintaining ships is so expensive.
Conflict in Endless Space 2, be it all out war or economic manipulation, all carries a cost. The Lumeris aren't supposed to get a free ride with inflation, they're simply supposed to be hurt by it less because as Freny said, it's their weapon, it's their method of waging war.
I'm sure if you play with basically just military-related victory conditions enabled, you don't know how powerful economic factions really are, but economic victories are about the only ones the AI can reliably pull so you kind of just make the game easier on yourself by disabling them.