The economic thread

[Tobias]

Hello

I find this game very interesting, but I am having big troubles regarding the economy. I am playing as Denmark, so shouldnt be that hard, but struggling anyway.

I am not really here to seek advice. Just to make a thread where players can write there experiences and maybe reveal, the "holy grale" in this game when it comes to the economy part.

Hopes that alot of players will fill in some clever words regarding the subject.

[Hello]

i succeed to get an positive budget with France, but i have trouble with the industry. Adjust Tax, lower expense, improve the work time influence the economy but not the industry

[Tobias]

ok thanks

[Steven2805]

Playing as China I was able to remove all my debt and become 35% of the worlds economy, my strategy started with dropping company tax rated. Perhaps the largest jump in growth was signing oil deals with an OPEC country. The largest influence to becoming such a large % of the worlds economy was creating SPC ( Steel Producing Countries) Steel is used in so many industries and most countries don't produce enough... I was producing nearly half the worlds supply and managed to get Russia and India to sign up which if memory serves me right I had about 70% of the world steel production under "SPC". Over a 5 year span I pushed the price of steel up starting at around $300 and ending at around $1400.

Find out what your country produces and find out how you can either make it cheaper or sell it higher, you may not have the same power as China but the play is the same. Make a company want to make it in your country

[Hello]

creating SPC ? can you explain that ? The method you used, wich part in the game is it ?

[Tobias]

I will try to look into that, thanks alot

[Conte]

It's also wise to cut spending on sanity especially the first 3 category, early game you'll have a surplus and also try to do a lot of deal with America or great powers (but watch out for inflation)

[Tobias]

Okay thanks, just to be sure, to fight inflation you can adjust the interest rate up, yes?

[Tobias]

I also managed to lower the debt my negotiate with loan givers.

[Steven2805]

Sorry about the late reply.

You can create it by selecting new organization.
My options were:

Term of sec general = 2yrs
State budget = 0.8582%
Members Due = 0.5%
Minimum production level = 1%
Summits = Monthly

You need to be friendly with any nation you want to join, India took some work. I set up some trade deals which favoured them at the cost of my own economy (considering my economy was 29813.2Bs vs India at 3233.0Bs its wasnt really an issue)

I would warn against raising prices to quick as I caused a global crash and had to quickly drop the steels prices to save the world haha.

You can also destroy countries easily when you hold so much of the economy, Canada for example attempted sabotage and were greated with an embargo they now stand with 138% debt to GDP which is higher than the greece 117%

[Jake2.0]

Can someone help with inflation please? I am playing Norway, i have managed to get unemployment to 0.10 (had to make it easier migrants lol) Growth is 12% and my inflation has gone from 2.30 to 4.25... I increased interest rates to 5% I will most likely increase it to 10% real soon if inflation doesn't slow down. Do i increase minimum wage? raise taxes? I have been buying loads of products off other nations just to make sure my people have their needs fulfilled (Could that cause production to decrease?) Sorry for the barrage of questions but inflation is my 1# enemy in every game I have played. Thanks for reading and any future help :)

[Steven2805]

Your inflation is a product of high growth, your high growth is most probably caused by great value contracts your signing.

Stagger your contracts out, some 1yr 2yr even 10yr can help ease the economy.

As China I signed contracts in January and August, Don't be scared to raise the interest rates but be aware that it will slow your growth temporarily.. 20% even 30% wasnt uncommon for me trying to control China's inflation. However I watched the inflation on a weekly time frame and would lower increase interest rates as needed normally (+-)0.25% to 2.50% per change. Lower or increase your rates before you reach your target/max inflation rate as the change takes time to enact.

My target inflation was 2.50 and max was 6.0

Helpfull tip :
You can get more upto date information by comparing your country to another, the inflation will be listed. Take note of it and you have a daily updated comparison.


Hopefully this helps

[Jake2.0]

Thanks Steven for taking the time to reply. I appriecate the help, will remember those important factors when doing trade deals. I never considered how long a contract is can affect your economy... So if i space it out does that mean for example I sell or buy 1000000 steel over over 5 years that goes into or out off my economy over a 5 year period? Thanks again for your time.

[gardinershow700]

Does anyone know how to create a "Housing" bubble

[DirtyClaw]

Originally posted by gardinershow700:

Does anyone know how to create a "Housing" bubble

Creating a bubble has to do with market speculation. The only one speculating in the game is the player I guess. In the game the supply is or is not meeting needs, and without any speculation of future needs or trends driving price points.

[boomermojo]

Originally posted by Jake2.0:

Can someone help with inflation please? I am playing Norway, i have managed to get unemployment to 0.10 (had to make it easier migrants lol) Growth is 12% and my inflation has gone from 2.30 to 4.25... I increased interest rates to 5% I will most likely increase it to 10% real soon if inflation doesn't slow down. Do i increase minimum wage? raise taxes? I have been buying loads of products off other nations just to make sure my people have their needs fulfilled (Could that cause production to decrease?) Sorry for the barrage of questions but inflation is my 1# enemy in every game I have played. Thanks for reading and any future help :)

Your inflation is fine as long as doesn't overtake the growth rate. Its better to wait untill next year when the growth/inflation algorithms reset (that way interest rates will have a much stronger effect on inflation). With full employment you can usually set the exchange rate to 20%, if unemployment doesn't rise then you can keep it at 20% (the GDP hit will recover). If you have a decent minimum wage in comparison to the GDP per capita, then you don't need to raise it with inflation because the inflation rate increases the budget costs. In other words the min wage/public servant salaries are automatically adjusted for inflation.
In cases where inflation is very high and the growth rate is low (stagflation) you need to increase the minimum wage by a LOT, because your economy is actually in a recession. The min wage increase normalises purchaseing power. It increases growth and lowers inflation but don't ask me to explain that because I have no idea.