' Wrote:....Then Rheinland shouldn't even exist....
ikr lol, that's just silly.
Although technically speaking, if wages and benefits accrued at the rate of inflation, then a closed economy could survive inflation at any rate indefintely.
Usually it's the lag between the two that causes the actual trouble, and the interference from outside markets.
gone four years, first day back: Zoners still getting shot in Theta :|
That inflation rate is very bad but not catastrophic. It's below hyperinflation, at least. It's the sort of thing that would need a major financial shakeup in Rheinland within some years, but not the months/handful of years of crazy inflation times. With Rheinland's v nationalised economy, it wouldn't be truly so awful. It happens irl, people get over it. Russia, I don't know about right now, but it used to have inflation rates in that general realm. But the people on the street just use US dollars (Liberty coin, natch), and the economy keeps growing and it's all fine.
' Wrote:That inflation rate is very bad but not catastrophic. It's below hyperinflation, at least. It's the sort of thing that would need a major financial shakeup in Rheinland within some years, but not the months/handful of years of crazy inflation times. With Rheinland's v nationalised economy, it wouldn't be truly so awful. It happens irl, people get over it. Russia, I don't know about right now, but it used to have inflation rates in that general realm. But the people on the street just use US dollars (Liberty coin, natch), and the economy keeps growing and it's all fine.
Five percent a week is not catastrophic. It's unheard of for any country still able to function.
In twenty weeks one's savings would be halved. In fourty weeks, quartered. Not to mention the effect this would have on debts owed to banks, who would quickly find themselves insolvent, or on the interest rates any sane company would charge.
Every real-world example of hyperinflation inevitably ends in the complete collapse of the government presiding over.
End of story.
p.s except in certain cases with fledgling governments that then get subsumed into a reform/new government by the same people.
gone four years, first day back: Zoners still getting shot in Theta :|
' Wrote:Five percent a week is not catastrophic. It's unheard of for any country still able to function.
In twenty weeks one's savings would be halved. In fourty weeks, quartered. Not to mention the effect this would have on debts owed to banks, who would quickly find themselves insolvent, or on the interest rates any sane company would charge.
Every real-world example of hyperinflation inevitably ends in the complete collapse of the government presiding over.
End of story.
p.s except in certain cases with fledgling governments that then get subsumed into a reform/new government by the same people.
This isn't really true
Russia, which I mentioned before, averaged 175% pa for 20 years (1990-2010), this is in the same ballpark. Russia did ok.
I got bored of trying to wiki real world examples of hyperinflation, but the worst two didn't result in the complete (or any) collapse of the government presiding over.
I think what people are neglecting here, is with the current state of war with Liberty, after driving their corporations from Rheinland... IC suing their government for money owed would be silly to say the least. All they could do is start another war.
That said, Rheinland is still thoroughly boned, though the level of boned is yet to be determined I guess.
EDIT: Plus the already crappy economic situation. But it reminds me a lost of post-war (as in, WWI) Germany.
Russia, which I mentioned before, averaged 175% pa for 20 years (1990-2010), this is in the same ballpark. Russia did ok.
I got bored of trying to wiki real world examples of hyperinflation, but the worst two didn't result in the complete (or any) collapse of the government presiding over.
Hungary, Zimbabwe, the Weirmar Republic, Yugoslavia.
All of em collapsed or ceased to function.
gone four years, first day back: Zoners still getting shot in Theta :|
' Wrote:Hungary, Zimbabwe, the Weirmar Republic, Yugoslavia.
All of em collapsed or ceased to function.
??
Mugabe is still in charge of Zimbabwe.
Weimar rode out the inflation and continued on until brought down by a bunch of stuff.
Yugoslavia, also continued on and wasn't brought down by the inflation.
Hungary, I don't know anything about. Can't immediately see that it happened though.
On that note, I thought Rheinland was based on the Weimar Republic? So unless changes are/were made in Rheinland, it would face a similar fate (albeit a spacefate).
![[Image: tumblr_lyvivmGP711qk8923.gif]](http://media.tumblr.com/tumblr_lyvivmGP711qk8923.gif)
![[Image: 4986_s.gif]](http://signavatar.com/4986_s.gif)