Inflation Question, please address

[Richard Plantagenet]

On one of the screen shots where the Profit and Loss sheet of is displayed, one of the items in the expense section is INFLATION :( . I have no problems with inflation being included in the game (as a matter of fact, I'm all for it, because it adds to the depth of the game), but why is inflation only affecting expense? shouldn't inflation affect the income section as well?

I understand the reason why inflation is there is probably to serve as a punishment for raising too much war tax ??? but surely, the punishment doesn't have to be as servere as the one sided inflation effect.....

anyone who has played EU2 would understand what I'm talking about.... If there's no way to change this now, at least give us some sort of action we can trigger to reduce the level of inflation before it reaches hyper levels and spin the economy out of control..... :o

Many thanks in advance. :cheers:

[Angryminer]

Why does inflation alter the income?
In EUII the income wasn't altered by inflation too, so I really don't understand your problem.

Angryminer

[Jarlabanke]

Lets say you have a 10% taxation on all cheese sold in the country. Inflation makes the price on cheese go up from from 100€/kg to 110€/kg, the 10% tax will now represent 11€ and not 10€. Dunno if it worked that way in EU2 though.

[Angryminer]

It didn't. Because your expenses grow by more then 1€/cheese because of 10% inflation.
So if the income grows by inflation, the expenses have to grow by inflation even stronger, so that it doesn't matter.
I think that's the point behind the EUII-system.

Angryminer

[Frank Fay]

Invlation increases when you dont spent money and only collect. As soon as you spent money it goes down. It is dynamically and of course Kingdome size etc. will be incoporated.

[Richard Plantagenet]

thanks Frank. That's good to know.

EU2's inflation only affect the expense side. without getting too deep into the spiral effect of inflation, lets just say it should affect income and expense pretty much equally in a dynamic economy.