Capitalism 2 and Capitalism Lab Forum

Another new feature to be implemented in Cap2 is the handling of hyper-inflation

When the accumulated inflation has reached 10 times (1000%), banks will reissue new banknotes of smaller value (10% of current value), deflating all the currency on the market to make the current figures more manageable under the effect of inflation.

The news message will look like:

"The government announced that the currency will be revalued at a ratio of 1 to 10. Banknotes and coins for the revalued currency will enter into circulation. "

With an inflation rate of 20%, a product will be 3800% more expensive in just 20 years. A bottle of milk selling for $2 now will be selling for $76 in 20 years with 20% annual inflation rate.

I believe that Cap2 would be the first game that ever implements a realistic simulation model of inflation with player controllable time scale. Hope you will like it when it is done.

I like this option.

Speaking of banking, will players be allowed to own banks/lend in the new add-in?

I think the idea of introducing inflation is great as it will give players an aversion towards hoarding cash as well as introducing price increases.

Hyper inflation, though, is not a term used for accumulated inflation, but rather on abnormaly high inflation rate (like 50 % per month). This is a very rare occurance, and is always caused by bad financial and/or monetary policies, not something that "just happen".

In the other words, it makes little sense in the game's global inflation model where a hyper inflation would require co-ordinated mass printing of money by all respective cities.