[SSE] Inflation

[orangeyman8]

What if there is an inflation rate, like in real life?

 

There could even be sticky prices, so different merchants change their prices at different times to reflect the new price level (i.e. merchants don't always exactly match the inflation rate, instead they set a price and after a certain period of time raise it to match inflation; and the merchants change their prices at different frequencies and different times).

 

One potential difficulty is that this should probably also adjust quest rewards that pay in septims.

 

I also think there would have to be a justification for why there is inflation. Perhaps the septims that adventurers are constantly discovering is what is raising price levels.

 

As an extension to this, there is the opportunity to make a very detailed economy simulator, where all the characters in the game are tracked, and as they fulfill their jobs, items are created/destroyed/bought/sold (e.g. farmers grow food and then sell it, and then it's eaten, and this is all tracked; blacksmiths forge new weapons; other adventurers collect artifacts; etc.), and prices are set to achieve equilibrium.

[gaoptimize]

Not possible with gold money AND currency. Recommend reading on the Gold Standard .

 

Having said that, there is one feature of Ordinator Perks that is clearly deflationary. At the top of the Pick Pocket skills tree is Dragon Hoard. For 50,000 Septims, you can buy a perk. There is no indication that this gold goes anywhere except the void. I roughly calculate the "M1" of Skyrim to be about ~10 holds/cities X ~10 merchants X 2,000 Septims plus ~500 NPCs and bandits X ~100 Septims (the rest in chests, urns, etc. is adder components to M2). If roughly correct, M1 is 250,000 Septims. Thus, sending 50,000 Septims to the void is unimaginably deflationary.

[orangeyman8]

I know about the gold standard, that's why I said you would need to justify why there is inflation. My example was that adventurers are discovering septims. If you claim there are around 250,000 septims in circulation, and say there are 2 adventurers per city, that is around 20 adventurers in Skyrim. Say each is finding approximately 200 gold per week from their adventures, which was formerly out of circulation. Then that's 4,000 gold per week, or about 1.6% inflation per week. This doesn't seem unreasonable, does it? (Of course, 1.6% inflation per week leads to about 128% annual inflation, which might be a bit high.)

[gaoptimize]

"Then that's 4,000 gold per week, or about 1.6% inflation per week. " OK. Good thought. There is also the gold miners. ~3 mines/seams and ~2 ingots a day on average = 600 * 7 days = 4,200 Septims. But, there are other factors:

1) Is Skyrim a net importer or exporter? At one time, the US Gov. had 8,000 tons of gold. Now, most honest observers believe it is far less than that due to flows and a lack of credible auditing. Given the behavior of and obvious historical reference of the "East (ehem) Empire Trading Company" (recommend listening to RFK Jr. announcement speech comments about the Boston Tea Party), I suspect net gold was flowing from Skyrim to the Empire, at least until/if the Stormcloaks are victorious. There is even a direct reference by Ulfric himself about the silver flows to the Empire during one of the Reach civil war quest for the Stormcloak side.

​2) The use of gold in the creation of jewelry and decorations.

3) Other hoarders converting M1 gold into M2 gold.

 

So it is hard to say, but an extremely interesting thought. I'll add that one of Ulfric's most pressing priorities after the war would be to establish a mint. A mod with that would be most welcome.

[showler]

Don't forget all the gold removed from the economy in the form of all the dead adventurers in caves/dungeons/ruins.