After reading a lot of topics i've found a lot of tips such as improving build speed with enginers or better production with supply depots (not yet confirmed) but nothing really helpfull with inflation.
So let's first think about what is inflation:
"In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the Consumer Price Index) over time." Wikipedia
So in the game we could translate that to an increase to the production costs of goods that our nation produces. It's produced because of the following:
-Low unemployement
-Low taxes
-High social, research or military spending
-building factories
-increase production
-Low domestic prices
-everything that normally improves DGP/c
As in a game where we don't and with a high dificulty we just can't conquer the whole world the only way to improve is rising our GDP/c to so spend more money in research and military buildup.
But also think of the most important, valious and resource, the real power of a nation, it's population.
So what everyone in the games wan't and needs is population growth, if you're military oriented you would not be reading this post but all those that are going the diplomatic way will have to rise social spending, lower taxes and do what ever improves immigration and birth/death rate.
So people do the following:
-Lower taxes (always have high income and corporation more taxed as it gives improve to Aproval rate)
-Push up social spending (healthcare for birth/death rate, education for reasearch, enviroment for international diplomacy bonus, family and cultural subsidies for even more aproval and imigration and the most expensive social asssitance).
-Build more factories
all those things bringing a huge boost to GDP/c and aproval rate but hurting our economy. After a few days we run out of cash so we ahve to lower military spending and maybe research a bit to keep up with the high construction, social spendings and low tax incomes.
and if we're not playing the hardest difficulty we even manage to keep growing in GDP/c, populattion, aprroval rate and money. All green arrows in the game interface...
But be aware!!!
Inflation comes!
What is happening is that your poppulation will gain more money per year (they get more paid for their jobs jsut like in real life i guess) and production demand will grow, the lower taxes will also raise demand so we have to produce a lot more to sustain selfproductive.
So we have build and are building more facilities, producing more and need more workers, hey we are reducing unemployement with that wich is ok... for the popullation, not for you. the fewer unemployement we got the more raises the GDP/c because industries have to pay more to find new workers as now they can choose the best payd work jsut like in real life.
In effect production costs increase, all good become more expensive as for the industry its harder to find workers and they have to pay them more money.
Worst of all is that as prices increase lineal for raw materials, produced goods like consumer goods or industrial goods (the most expensive off all resources not counting military) raise much faster because they not also raise because of the few unemployement its uses the raw materials that are also increasing its prices.
And not finished yet the inflation generated increases production costs x% thus driving prices higher faster and faster.
In macroeconomy this effect is called price/wage spiral. In a sense, inflation begets further inflationary expectations, which beget further inflation.
How to combat that? You will need a few things:
-Good diplomatic status with rich countries (my best trade partners playing as germany were Arabia Saudi, Ukrania, Australia, South Africa and thayland)
-Be 100% self sufficient
-Some reserves in Petrol, Electricity, Cons. Goods, Ind. Goods, Mil Goods.
What we need to do:
Lower spendings without loosing to much GDP/c
I closed all trade to configure it manually, set capacitiy to met 100-101% of demand
I shut down military production, unit production to 0
Military staff 1/4 recomended
Maint. and train 1/3 recomended
i pushed up taxes up to 81% reducing demand
in domestic markups i set products to 1-3% of their value for min profit on domestic sales
My domestic demand felt like a stone and as my industry went down from 100% to 20% my unemploment tax went up.
i was loosing GDP/c a and gaining some money so i rised my reseach spending till day to day by 10% and finaly got some growth in GDP/c.
As everything that spends money raises GDP/c i focused on things that dosn't lower unemployment rate. Maintenence and training instead of military staff would be a better option ifspending in reasearch is not enough to keep your gdp/c growing, i was looking for a 1-2$ growth per day,
keep in mind that a steady, regular growth has less side effects than a sudden push in any area.
if you are loosing 1$ GDP/c per day and everything is locked, your inflation is stable and you're not loosing tons of cash you have archieved your goal. After a while you will see with more popullation and without moving anything you will get positive growth in GDP/c.
I will post my example playing as germany
MIl dif: Hard
Economy dif: normal
Dipl. dif: normal
Year 2027 i have done no war, just was spending money onresearch, alliances, and selfproduction.
GDP/c: 49,315
overall tax 81,7%
inflation: 5,9%
unemployment:4,0%
GDP/c: 49,332
overall tax 81,7%
inflation: 5,8%
unemployment:4,1%
GDP/c: 49,440
overall tax 83,6%
inflation: 5,5%
unemployment:4,1%
GDP/c: 49,745
overall tax 85,4%
inflation: 5,4%
unemployment:4,1%
so i waited a few week, everytime i saw my GDP/c growing more then 1 $ i raised tax, lowered prod, reduced social spending, research or whatever and if i was loosing to much i just improved research a bit.
so at 10.7.2027 my nation stats where s following
Pop: 95.154.932
GDP/c: 49.876 +4$/day
Imigration: 531.263
Emmigration: 44.913
Births: 2.741.557
Deaths: 969.068
Defcon: 5
Staff: 1/4 recomend.
Maint./train:1/3 recomend.
Social Spending: 27,7% (enviroment, family and cultural sub. maxed)
Tax: 86,4% (Low income, high income and corporations maxed)
Repayed all bonds
inflation: 5,1%
Unemployed: 4,2%
Tech Lvl: 154 (34 Research centers)
Research Eff: 169%
Techlvl: 80%
P. Dev:100%
P. Costs
Petrol:158$
Coal:91$
Metal:509$
Elec:216$
Con.G:23957$
Ind.G:17412$
Mil.G:42310$
So i was still wining GDP/c so i lowered Research efficiency 3% and tech level 4%, i reduced electric production a bit as i was producing more then needed and i raised the unemployment tax a bit.
after 6 days:
16.7.2027
Pop: 95.191.208
GDP/c: 49.868 -3$/day
Imigration: 535.670
Emmigration: 44.393
Births: 2.742.570
Deaths: 997.003
Defcon: 5
Staff: 1/4 recomend.
Maint./train:1/3 recomend.
Social Spending: 27,7% (enviroment, family and cultural sub. maxed)
Tax: 86,9% (Low income, high income and corporations maxed)
Repayed all bonds
inflation: 5,0%
Unemployed: 4,2%
Tech Lvl: 154 (34 Research centers)
Research Eff: 166%
Techlvl: 76%
P. Dev:100%
P. Costs
Petrol:158$
Coal:90$
Metal:508$
Elec:215$
Con.G:23863$
Ind.G:17345$
Mil.G:42310$
I had a bit minus GDP/c so i'll increase social spending a bit or jsut wait few days but i'm happy with the stable growth. I have to maintain myself by doing manual trades with allies that pay x3-x10 times the price of products.
Tell me if the post was helpfull for you or if you have any other ideas or see anything that is not correct.
Have fun with the game
My first play without cheating
, learning so much more.
Worfest
Login
Register
FAQ
Search
