Interest rate and macro economics

[lagrelax]

I recently notice that the interest rate in the current version of the game normally goes unrealistically high in the latter game. I've run a couple of simulations of various AI companies and start-up capitals. In all games the rate usually rises above 10% after 2000. This results to a shrinking valuation in the stock market. In the latter game I usually holds a large number shares of AI company and can do nothing but see myself lose billions in stock. This significantly reduce my joy from the game.

I think this is due to the overheating economy as all my simulations having a expansion streak above 6% GDP growth, even for the extreme scenario of 15 AI company and very low start-up capital (This matters because along the way new AI will join, the start-up capital can be viewed as newly printed money). None of them show a typical economic cycle as I clearly experienced before in the previous versions of the game. The only exception is to run with the modern world mod in which the manufacturing is so complicated that nearly no AI company can profit, but even in that game, when the economy is contracting at a -4% GDP growth and 0.3% inflation, the interest rate is still as high as 4%. Also the central bank is very reluctant to cut rate but very sensitive to increase rate. I do feel the GDP calculation and the responsiveness of the rate should be adjusted here.

[David]

We will investigate the problem.

Could you please provide us with your save game file and let us know the following?
1) Which version of Capitalism Lab you are using. You can see the version number on the top-right of the main menu.
2) If your savegame uses a MOD, please let us know the name of the MOD and the MOD's version number.

You can find save game files of Capitalism Lab from:
C:\Users\<your user name>\Documents\My Games\Capitalism Lab\SAVE

You may email the save game file to us at info@enlight.com.

If your save game file is too large for attachment, you may check out this post about how to send us large files: viewtopic.php?f=13&t=2473

[lagrelax]

I'm using 5.8.0.0 beta, this saved game does not have any mods. Pretty much illustrated what I've mentioned. Most of the companies are having a less than 1 PB ratio

[chengtsai]

I think the inflation rate and GDP growth should be cut in HALF to better reflect reality.

[standardplayer]

I have always had problems with Interest rates and inflation in this game across multiple releases and saves. Later in the game Interest rates often hover around ~10%-12%+ and inflation is usually ~4%. In a developed country interest rates for secured debt are usually ~4%-8%, inflation is targeted at 2% and usually ranges 2%-3%. Interest rate should only hit double digits if inflation is really high like in the 1980s.

[David]

We have improved the aspects of the economic simulation engine that compute the GDP and the interest rate.

Please download the latest post-release beta patch v5.8.02 from:
viewtopic.php?f=10&t=5958

If you still encounter issues with the GDP and the interest rate, please let us know.

[lagrelax]

Thanks for the quick turnaround David. I'll try it later. What are the specific improvements?

[David]

Thanks for the quick turnaround David. I'll try it later. What are the specific improvements?

I believe that it has addressed most if not all the issues that you have reported.

[standardplayer]

Thanks for the quick turnaround David. I'll try it later. What are the specific improvements?

I believe that it has addressed most if not all the issues that you have reported.

Sounds good I will have to check it out

[MichaelCog]

USDINR is right now more affected by Oil price, other imports like gold and interest rate in USD/EUR/YEN which may rise if inflation in USA starts to go up, in that order.