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I tried to keep inflation between 1.5-2% for the first 50 months and then decided to find out what happens if I YOLO permanently fix the interest rate to -0.5%. After the 240 months I somehow ended with GDP 442999 and 1.53% inflation. How come? Shouldn't I have a runaway inflation?
Started with 0.25% and when the random events happened, adjusted rate really fast to get inflation to no more than 1% for ~6ticks
Earlier quoted context omitted.
Thank you so much! I've similarly been trying to wrap my head around monetary things recently, and as with learning anything in physics (my field), I believe you don't really understand a model unless you can code up a simulator. It's been maddening not being able to find a comprehensive model of how all the bits fit together, and I have many times wondered if the lack of existence of a game like yours meant that no…
I've been looking for something similar too, an explanation of the financial system written out in code so that I can try understand it.
442,329 by controlling interest to keep inflation as close to 1.5% as I could (which isn’t always easy). 442,306 by just immediately setting interest at -0.5% and leaving it there entire time. Inflation varied widely, but seemed to correct itself around 12% and -4% and spent a lot of time near 0%. Can anyone explain an economic theory why that happened, or is the game not reflective of reality?
Edit: New highest known score… 443,385, basically same strategy. 2.25% at beginning, down to 0% during drought, up to 1% when buyers spend less, then jiggle your way till end.
442,329 by controlling interest to keep inflation as close to 1.5% as I could (which isn’t always easy). 442,306 by just immediately setting interest at -0.5% and leaving it there entire time. Inflation varied widely, but seemed to correct itself around 12% and -4% and spent a lot of time near 0%. Can anyone explain an economic theory why that happened, or is the game not reflective of reality?
In the blog post ( https://benoitessiambre.com/simcb.html ) I explain why it's difficult to get inflation to rise very much under normal circumstances. I think it's mostly because I don't have a government doing deficit spending. You can reach higher scores (through lower menu costs) if you try to maintain lower inflation (like 1% or lower), however keeping it too low can make it harder to keep stable and you will be…
Yeah, some of my more aggressive tries had this happen and got lower scores.
What’s the highest you’ve seen?
And thank you for building this!!!
Earlier quoted context omitted.
Similarly I immediately lowered to -0.25% and left it there, really quite stable and climbed gradually (not monotically, but close) to 442370. I assume it needs a bit of a tweak for negative inflations, or is limited by the events being fixed - 'people spend 12% less' is more likely to happen at higher interest rates for example. And in particular if we weren't leaving it fixed but had only just lowered it, (i.e. inc…
Isn't a negative interest rate basically UBI?
Earlier quoted context omitted.
I've been looking for something similar too, an explanation of the financial system written out in code so that I can try understand it.
Something I found recently is Steve Keen's Minsky , and his book The New Economics , which uses Minsky to go through a series of simple models of the modern fiat money system. http://www.profstevekeen.com/minsky/
Worth the caveat that Keen is a heterodox economist. So if you pull his off-the-shelf models you are not getting the current accepted “mainstream” theory. I don’t think Economics is a field as mature as Physics where you should have extremely strong deference to the orthodoxy based on an incredibly strong prediction record, but it’s worth keeping in mind.
442,329 by controlling interest to keep inflation as close to 1.5% as I could (which isn’t always easy). 442,306 by just immediately setting interest at -0.5% and leaving it there entire time. Inflation varied widely, but seemed to correct itself around 12% and -4% and spent a lot of time near 0%. Can anyone explain an economic theory why that happened, or is the game not reflective of reality?
Didn't Japan have negative interest rates?
What is a good score tho, to get some idea of if you did OK or not? A few people mentioned 400-450k, is that average? Where's the dam leader board ;)