Depression to Booming Economies

[David]

CapLab Post-Release Beta V6.1.07 has been released. Link: http://www.capitalism2.com/forum/viewto ... =52&t=6996

It added a new option “Boom-Bust Cycle Volatility” on the New Game Settings menu’s Environment page.

It adjusts the economy's impact on consumer demand, which affects GDP and in turn affects the volatility the boom-bust cycle. (The boom-bust cycle is the expansion and contraction in the economic cycle that occurs repeatedly.)

You may test games with it setting to low and see if it resolves the problem discussed in this post.

[james88]

CapLab Post-Release Beta V6.1.07 has been released. Link: http://www.capitalism2.com/forum/viewto ... =52&t=6996

It added a new option “Boom-Bust Cycle Volatility” on the New Game Settings menu’s Environment page.

It adjusts the economy's impact on consumer demand, which affects GDP and in turn affects the volatility the boom-bust cycle. (The boom-bust cycle is the expansion and contraction in the economic cycle that occurs repeatedly.)

You may test games with it setting to low and see if it resolves the problem discussed in this post.

I found that the problem seems to be the purchase of land by real estate AI, the purchase is vast and will cause a city to fall into a recession.

I think a rule needs to be applied to the mayor AI to stop sales that will cause negative GDP.

[colonel_truman]

I found that the problem seems to be the purchase of land by real estate AI, the purchase is vast and will cause a city to fall into a recession.

I think a rule needs to be applied to the mayor AI to stop sales that will cause negative GDP.

What do you mean? If the AI corporations buy land the money goes to the city. If the city has the money and spends it then the GDP will rise.

[james88]

I found that the problem seems to be the purchase of land by real estate AI, the purchase is vast and will cause a city to fall into a recession.

I think a rule needs to be applied to the mayor AI to stop sales that will cause negative GDP.

What do you mean? If the AI corporations buy land the money goes to the city. If the city has the money and spends it then the GDP will rise.

As I said, real estate AI land purchases are causing recessions.

Start a game with 40 AI, massive capital, 1 city.
Fast forward and you’ll see for yourself.

[colonel_truman]

I found that the problem seems to be the purchase of land by real estate AI, the purchase is vast and will cause a city to fall into a recession.

I think a rule needs to be applied to the mayor AI to stop sales that will cause negative GDP.

What do you mean? If the AI corporations buy land the money goes to the city. If the city has the money and spends it then the GDP will rise.

As I said, real estate AI land purchases are causing recessions.

Start a game with 40 AI, massive capital, 1 city.
Fast forward and you’ll see for yourself.

Yes, but what´s you opinion about what causes it. Is it land sales or purchases? being purchases don´t make any sense.

[james88]

What do you mean? If the AI corporations buy land the money goes to the city. If the city has the money and spends it then the GDP will rise.

As I said, real estate AI land purchases are causing recessions.

Start a game with 40 AI, massive capital, 1 city.
Fast forward and you’ll see for yourself.

Yes, but what´s you opinion about what causes it. Is it land sales or purchases? being purchases don´t make any sense.

It’s actually both, cities are forced to buy land back which is rarely beneficial, but the main culprit is actually the purchase, it causes a ridiculous spike in growth which is hard for the AI mayors to compensate for the year after, especially up until cities are self sustaining, or have massive export industries.

[David]

A known cause of this issue has been addressed in the latest version 6.2.04, which you could download from http://www.capitalism2.com/forum/viewto ... =10&t=6995

[Spac3y]

The thing Ive found is we probably go for the loan book for the worst performing loans.This means in the booming times your maximizing your loan interest with a low level of defaults.

When boom goes to depression I have to drop the loan to asset ration back to 70% (I gradualy nudge it up from 70% to 90%)as the bank grows, The logical reaction would be to re-balance the loan book from c and ccc loans to A and B loans (theoretically the loan write offs should be considerably less). However, the problem is you cant shrink the loan book quick enough in the depression times to re-balanace to A and B loans so your as well as to tough it out. One the economy levels back out again you can start to raise the LTAR back to 90% a few percentage at a time

Providing you have kept enough capital in the bank and not stripped it out you will survive a depression fairly easy,