how do I low my inflation?

[rorra]

I started to play as Argentina, three times until I reach some earning...
At this time, I already paid the extern debt (about 180.000 M), I started creating a lot of agriculture industries and oil, when I got some money I build a big electric industry and then I build some industry goods and some consumer goods.
So I was getting rich, a lot of income by trades, I was paying off the debt until I realize that I got lower unemployment (about 3%) and I was getting inflation
At this time, I alread destroyed half of the industry (I don't know what to destroy to incread unemployment), I can't destroy more industries because if I do that I won't fit my internal demand.
I have 2.4% unemployment, 19% inflation, 16,882 GDP/c , and my treausury 35,000 M, I also have 44.20 M people and my taxes are about 60%
I tried everything but I don't really know how to decrease the inflation, I can't sell goods for profit because it's really expensive to produce them (about -5/-20% less than my neighbours).
Neverless, I'm earning money because of my internal consuption (they buy the goods for 25%), and I'm speending a lot in social services (115%) and also some money on research (just 1 center, but 60M (recommended 30M))
I say to my minister to fight the inflation, but he does nothing, and I just don't know what to do....
By the way, my neighbours have only 2,000 M in treasury, they never pay their external debt.... so it's good to have 35,000M in my treasury? or I could earn more money than that? (I'm earning about 20,000M by month)
I read some posts where people say that they earn about 700 billion by day
By the way, my aproval is of 52% (my people is happy, they should be, I was the only one in the world that paid the external debt, a miracle), but I can't get them to grow (I say to my minister to increase the inmigration), I have 500.000 inmigration and 120.000 emigration, so it's ok, and I have about 770.000 birthds and 380.000 deaths :S

[BigStone]

I say to my minister to fight the inflation, but he does nothing

Patience young Paduan... patience...
It will take some time before a minister comes alive... (just IRL)

BTW the search function is very usefull..

Cheers

[The_Blind_One]

yes, ur economy will continue to falter untill update 3 or 4 arrives, in that update they will allow countries to grow economicly, currently u can ''maximise'' ur economy, but maximising isn't ''growing'' :(...at the moment there's a direct correlation between unemployment inflation and GDP/c, with update 3 or 4 (hopefully, they are testing it now) this will be fixed. Also ur population is not growing because pop growth is broken at the moment and will also be fixed (hopefully) in update 3 or 4

Have a good day...(oh yeah another thing u can do is tax ur pop for consumer goods to the max and put produciton on demand and scrap the remaining facilities, but keep it in check and u should increase unemployment, slightly lower ur gdp, but less inflation and other negative things while remaining a powerfull economy (efficiency investments help but I am generally not very fond of them :S)

[CptBritish]

Ditching all but infrastructure in social services should help lower inflation but you will take a serious DAR hit over the long run... But it will lower your Inflation... Doing this I managed to lower georgia Inflation from 18% to 6% but my DAR fell from 42% to 18%

That of course is the Extreme...

You could just max out all Taxes... and Consumer goods, Food, Water etc mark-up...

[rorra]

thanks for the answers

BTW, I searched inflation topics on the forum but I didn't understand how to low the inflation, but I did understand how to get a headache

I'm going to restart the scenario, and I will wait for the update, thank you

[tkobo]

There are some far less extreme ways to lower your inflation.
Your game is in no way over.

1)If you dont have it yet-get the free flow of labor treaty with your neighbors.
Many of thier population will be happy to visit your country for the higher wages,but wont move there .

2)Look over your production.Raise the efficiencies as much as you can afford and deactivate any production facilities that are not directly needed.

3)If you have not already done so, set all production to demand.

All of these steps will increase your unemployment, lower your gdp/c and lower your inflation.

They will also lower your nations over all economy and its positive cash flow into that swelled treasury.But you have more than enough cash in there already and theres really currently no way i know of to measureably lower your gdp/c without your economy taking a hit.

[The_Blind_One]

Correct, currently you only get a FRAME gdp to work from.

Say for example, you start with 30.000 gdp/c and 10% unemployment in the game, this is your CENTRE POINT. Now if you were to increase your gpd/c by lowering taxes, more factories or any of that kind (anything wich induces more money into your economy and heightens ur gdp/c will make u sway from the CENTRE POINT.

There really is a fixed formula (currently, soon with hopefully patch #3 it is gone) between unemployment, inflation and gdp/c.

Currently it's really simple, increase ur gdp/c ALWAYS means less unemployment ALWAYS means more inflation. NO MATTER WHAT YOU DO!!! (now some decisions increase it more than others but it all boils down to the same thing)

Even if you get that increased production from technology (wich states that it improves the machine's) but even if you improve the machine's it WILL automaticly mean less unemployment. Because the game only looks at how far your gdp/c is from the CENTRE POINT.

For example: Europe, 12% unemployment and 5% inflation, and gdp/c of 25.000 (<---this is your centrepoint, you start with this)

now if I improve the economy to lets say 30.000 gdp/c then that means my economy is something like 125% with 100% being normal (normal being 25.000 gdp/c), now the engine knows ur playing at 125% as what was intended and it will hurt your unemployment levels and increase ur inflation...the game doesn't care if you got this extra 25% thanks to improved machinery (wich should theoreticly not have an impact on unemployment) the game doesn't give a **** and will calculate the extra production as if new people were hired (even if they arn't needed, but will still be hired) and thus inflation and unemployment levels drop for no reason. This is probaly what frustrates alot of people.

This also means that countries such as panama in the game can't grow much further than what they started with, no amount of technology will fix that. It's all based on your STARTING SCENARIO GDP/C and ur current GDP/C, nothing else counts really (okay some minor factors, but they are not even worth mentioning)

And when overheating your economy there is a sweetspot where you can maximise your profits, you need to hit that sweetspot (and often people overshoot that sweetspot and end up in destructive inflation numbers)

Okay well enough ranting

P.S

Oops almost forgot to add my solution and getting to the sweetspot.
Try reversing whatever the hell you did untill you see your inflation drop. Personally I found when starting to overheat your economy you can completely drop social security, honestly it only creates more useless jobs wich don't pay you ****, and when ur overheating your economy anyways you are getting such nice DAR ratings up in the 40+ that your settled. I always have everything at standard funding (social services) and only infrastructure to the max can't forget that and social security completely zero, I found this to be the best for a trade based economy. nice DAR of about 42%.

Just reverse what you did, try to focus on industrial and consumer production and try to maximise domestic sales, these products are often most profitable for the first 5 years, after those 5 years the worldmarket rates for them are mostly so flooded that it's not worthwile anymore, so you either got to depend on domestic sales or you should have conquered it all by your supereconomy after 5 years wich I always do

[Il Duce]

I would agree with Tkobo's post above of 22aug, and would add that selecting a good treasury minster will help. Begin with the priority "Fight Inflation" only and never change it.

[bergsjaeger]

You know there is an option to bringing inflation down but of course its not in the game. The option is really simple. Change the currency the country is using. This would work and there is an example in history where this was done. Germany after world war I had their inflation go up over 1000% it was so high the currency Germany was using was worthless and the people in the country had to settle for bartering for what they wanted. But when germany changed its currency the inflation went down to manageable levels.
Inflation is defined as the rising cost of buying things but it also means the value of the currency being used. Take the dollar for example. If inflation goes up 10% then with a dollar u can buy 10% less than u could before. So if ur inflation is going up then whatever currency ur using in the game is starting to become worthless like Germany's did.
The option to change currency would be a good idea if ur inflation went into the extremes. There could be also a penalty for choosing this option like half your treasury is did away with due to the change.