Deflation and Economy

margab · Post by **margab** » May 30 2005

I've been playing for Turkey for a while (like 6 months game time) and my economy is in ruins! I read the manual and went through the tutorials, but can't seem to get the economy up. First of all Turkey has a debt of 500 Billion $, thats a huge burden, but even still I should be able to do something. So what i did was first set defcon to 5(peace) and then sent alot of units to reserves (still have like half deployed though) and sold all the extra units i didn't need (such as ships subs etc.). This didn't balance my economy so i upgraded electricity (which was needed alot) facilities and some other production facilites to at least get a positive trade balance. Now I have like 25 M $/day pos. trade balance, but then the economy is still suffering. Thats why I had to set the social spending to a very low setting, which causes GDP/c to drop as well as approval rates. Along all these I have like -5% inflation (can't get a hold on this!!!) and 14% unemployement.

So it seems I'm failing miserably indeed.

If ANYONE could help me with this I would really appreciate it because I couldn't find a solution by myself. And sorry for such a long post.

tkobo · Post by **tkobo** » May 30 2005

Hheheheh, dont worry. I have 15 % deflation and 27.5% unemployment in one of my current games.

I also have 94 bil in the bank, pro cash treasury flow of circa 700 mil/day.

Niether of the first mentioned items ( deflation and unemployment) mean doom.

margab · Post by **margab** » May 30 2005

But you're in a good condition. I have like 1 billion $ in the bank, and my approval rate is like 19% since my social spending is so low. Any more suggestions to how to fight this?

bergsjaeger · Post by **bergsjaeger** » May 30 2005

I'm in a better shape Dar is 50% and rising social spending is way over the recommended taxes are 40% umeployment is only 3% and inflation is only 7% but the kicker is i been able to charge the hell out of the domestic markup i got everything over 100% markup and what the ppl don't buy i sell on the market. I been able to make between 200 M and 1000M a day and got a surplus of 25 M . saying i haven't been in the red for a good while and it took me least that 2 months to get this going. Course i did improve my industries and power plants with the help of engineers.

Bergsjaeger= mountain hunter

tkobo · Post by **tkobo** » May 30 2005

My approval rate moves back and forth between 18 and 20.( i get upward bursts that dont hold when i open new factories)

My tax rate is at 70%

Social spending is at a little less than 1/2 reccommended.

Except for the treasury surplus, we are in about the same shape.

Unless your facing an election, dont sweat the dar.

margab · Post by **margab** » May 31 2005

tkobo wrote:My approval rate moves back and forth between 18 and 20.( i get upward bursts that dont hold when i open new factories)

My tax rate is at 70%

Social spending is at a little less than 1/2 reccommended.

Except for the treasury surplus, we are in about the same shape.

Unless your facing an election, dont sweat the dar.

I understand what you said, but I still think there should be a better solution to this. I don't understand why I'm not getting any posts from more experienced players who know how to 'really manage' their economies...

-Rodri- · Post by **-Rodri-** » May 31 2005

Playing as Argentina in the Southamerican scenario.
Starts with -4.8% inflation and around 16% unemployment.
Play as Dictator so I don't really care about DAR.
First... Electricity... you have to plan and buid as necessary. Without electricity your economy is lost.
Second, look at your industries costs and WM prices. Build the industries in wich you have an edge against everyone else. (In Argentina all of them, so it's easy... lots of agricultural... cheap, don't use raw materials, and its sells very well in the market)
To get down unemployment and get rid of deflation you have to heat your economy, and you do it by spending money. Resarch helps, Military spending helps, and of course building industries.
I have now in this little southamerican country 4.5% Inflation and 5% Unemployment (I suppose I over did it), and a trasury of ~30 b (after debt payments!). But I lack in military units and all of my neighbors (spell check) have a lot of units spreaded all over the map. So I have now to increase my military spending a bit more, and I plan to raise my taxes (now in 50%) to cool the economy a little.

I think its easy to get there, but hard to keep it flowing.

margab · Post by **margab** » Jun 01 2005

Thx for the help. Some of the stuff actually worked. I built my agriculture industry (it turned out that i overdid it, i now have huge surpluses), and this helped get unemployed down and the economy going. Then i concentrated on petrolium and other industries to make profit (especially consumer goods is really helpful), now I actually started paying my debts. I payed back 2 of the 42 billion $ bonds, I have 10 more to go

On the other hand while everything was going really well, my relationship with my neighbors started deterioting because of reasons i don't know. I didn't do anything bad or aggressive, i didn't even build up many units, but my relationship with all the middle east went really really bad, so syria and iraq declared war on me. Do you guys know any ways to keep neighbors happy while getting rid of debts and building the country. (I have embassy with most countries and i give out food regularly to all but these don't improve relations). Any suggestions?

-Rodri- · Post by **-Rodri-** » Jun 01 2005

Everybody hates me too.

Xetal · Post by **Xetal** » Jun 03 2005

Deflation isn't a problem at all if you have some cash to spend. If I find my inflation falls below -3% or so, I usually sell some tech (or whatever I have to sell to get a nice pile of cash), and then turn research up to 500% of recommended. It's expensive to do, but you get some nice techs which you can (if nessisary) sell to get some money, and of course you can use the techs. It usually only takes about 4-6 months of this to turn you around from -3% to +3%, and then you can lower research again.

The same is true if you find your inflation going out of control (10%+), you can cut research down to 33% of normal and your inflation will cool down quite a bit.

I find that your research is a great tool to adjust your inflation without messing with your unemployment level. If you make production decisions based on jobs and the profitability, and then afterwards use your research to adjust your inflation, then you can control more aspects of your economy than you otherwise could.

I'm a big fan of emplacements with garrisons and 155mm artys in them, so I can usually get the 20%/40% range boost for my arty as well as the 3 back-to-back defense boosters for soft targets (military armor I, II, the one that applies them better, for a total of 15% more defense for your soft targets).

Thus, you can keep your deflation in check and increase the effectiveness of your defense all in one move.

edtamgca · Post by **edtamgca** » Jul 05 2005

A negative inflation is not deflation.
Positive or negative inflation is a only a monetary event.
Deflation is an event that concerning production and GDP. When the economic system works below its normal potential deflation occurs. Because if inflation is not good deflation is not better.
I play midest as Egypt. I have a deficit of 350M but with surplus export(petroleum,com-ind-mil goods) i can have tax 56.1%, social cost 59.2 %, inflation 0.9%(rise), unemployment 6.7%(falls). My GDP rise so my DAR is 26%(rise). I have reduced my reg debt at half and do war against Turkey.I have forgot that to obtain this values i have worked very hard for 4 years.

(sorry for my english, i'm a italian player)

3iff · Post by **3iff** » Jul 06 2005

edtamgca

Your English is very good...better than some who only speak English!