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4-17-2008 @ 4:58PM
I was just talking about this very point last night to my guildies. They were happy for the fact that there was so much new gold now that they'd be able to get their epic mounts and what not. It got me to thinking that when inflation rises in this WoW economy, it HAS to have real world effects to the gold farmers. Then it hit me in the face: Blizzard's not curbing the gold influx...they *want* the inflation. It's driving real cash prices down and I can see it eventually crashing out some of the bigger pay-for-gold services. Good on them, I say. The inflation will need to eventually be addressed, however. What's hurting the gold farmers is going to be hurting us as well before much longer.
4-17-2008 @ 5:16PM
Inflation does not exist in a controlled market. Blizzard controls how much things cost, as well as how much money you could be making. Therefore any change in economy is completely controlled by them. Inflation occurs when market forces cause a denomination to fall in value, inflation is only a problem when either of these two things occur:Income doesn't change to compensate.Foreign denominations remain at the same value, creating an unbalanced international trade.Since neither of these things occur in WoW, it is not inflation.
4-17-2008 @ 5:22PM
But the player-run economy (the Auction House, enchanters, etc.) is not under Blizzard's control (or rather, it's a free market), and this is where a majority of trade and currency use is. With more gold in the economy, buyers spend more gold more freely, sellers increase prices, and thus you have inflation.
4-17-2008 @ 5:55PM
As I said, it's not a problem if income increases. The intrinsic value of the item remains the same. The system remains balanced. Those who make more money than others continue to make more money than others. Inflation only becomes a problem when one of the factors is out of wack. Since Blizzard controls the drop rate of items, the amount of money dailies give, and the amount you have to spend on repairs, it controls EVERY aspect of WoW's economy. Therefore inflation cannot occur.The causes of inflation can occur yes, but the symptoms (eventual crash of the market because of ever increasing costs of living vs. wage) cannot occur because blizzard controls everything.This is why 100% controlled markets do not work in real life. No one can control natural disasters, no one can control a source of iron to make steel running out, these are limited sources and therefore factors that cannot be controlled.
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