Inflation increases if you spend too much money (don't have enough money for your production needs). If you run out of money, the engine does 1 of 2 things, which depend on when you run out of money.
If you run out during purchasing, then it doesn't purchase things you want on the market (foreign goods). If you run out while your factories are producing, then your nation borrows money to keep the factories working. You probably are trying to spend too much money the 1st few turns (purchasing factories, railroads, colonial options etc.)
If you run out during purchasing, then it doesn't purchase things you want on the market (foreign goods). If you run out while your factories are producing, then your nation borrows money to keep the factories working. You probably are trying to spend too much money the 1st few turns (purchasing factories, railroads, colonial options etc.)
Remember - The beatings will continue until morale improves.
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You have a chance each turn of inflation dropping on it's own (it's called economic sunrise). Your options are the import goods (you can do coal, steel, and mfg goods). If it is high enough, and you are advanced enough, you get a option to lower it (I think it must be 10% or higher).
Remember - The beatings will continue until morale improves.
[SIGPIC][/SIGPIC]
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Do not freak out with high inflation. Unless you are expanding hard (building industrial capacity and such!) it won't matter much even if you reach 10% or more. The trick to enjoy the game is NOT to try to "outsmart" the AI, as it can be easily outsmarted by ultrahard overexpansion. The game is sooo long (even when you start at 1880) it really does not matter to maximize your IC so early. Relax the imports, decrease the buildings you build per turn (or year), and the inflation events will be much less frequent.
Care to unify Germany as Austria? Recreate the Holy Roman Empire of the 20th Century:
Großdeutschland Mod
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Großdeutschland Mod
Are you tough enough to impersonate the Shogun and defy the Westerners? Prove it:
Shogun Defiance Mod (completed AAR)
It IS bad. Unfortunately I am not aware if the game simulates correctly deflation (negative inflation) which is even worse. Perhaps a future patch could add a big contentment penalty if that situation arises. 
Most importantly, inflation should be under control. If it remains stable (even relatively high, but not more than 10%) you are doing well. Yes things will cost more to construct or buy (import), but that's about it. Economic sunrise events and political actions can decrease it now and then. My advice is simply: do not obsess over it. It is harmless, unless entangled in a cutthroat war. But in that case, your problems are much worse than simple inflation.
Most importantly, inflation should be under control. If it remains stable (even relatively high, but not more than 10%) you are doing well. Yes things will cost more to construct or buy (import), but that's about it. Economic sunrise events and political actions can decrease it now and then. My advice is simply: do not obsess over it. It is harmless, unless entangled in a cutthroat war. But in that case, your problems are much worse than simple inflation.
Care to unify Germany as Austria? Recreate the Holy Roman Empire of the 20th Century:
Großdeutschland Mod
Are you tough enough to impersonate the Shogun and defy the Westerners? Prove it:
Shogun Defiance Mod (completed AAR)
Großdeutschland Mod
Are you tough enough to impersonate the Shogun and defy the Westerners? Prove it:
Shogun Defiance Mod (completed AAR)
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Sir Garnet
- Posts: 935
- Joined: Sat Jul 16, 2011 8:23 pm
Deflation was not worse - a mild deflation in prices is the natural result of efficiency gains. In the game, however, negative inflation gives you a cushion to gain some inflation points while positive percentages just mean some things cost more. For a large country it is not worth taking 1% inflation by using up private capital in order to get f100 cash because the cost base is large, but for a small country it can be worthwhile.
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