arabik0

Is it pest control, or some other place? Im level 70 att, 65 Strength and 64 defence Ty for any posts

inventory?

what should i take in my inventory then?

Attack 70 Strength 65 Defence 64 Range 63 Defence 47 Magic 58 Hitpoints 67 Prayer: 47 Combat 82

Its not that simple sworddude. You cant just say that prices decrease because there is more supply and demand. If supply and demand increase in the same quantaties as you imply, then prices stay the same, but there are simply more goods available. What you say takes no account of fluctuation in supply and demand. Also inflation has nothing to do with more supply and less demand. Inflation is to do with how much currency is available for the economy, in purchasing power.

***Please note that this thread is not the first discussion on the topic*** Many of the people who played the old runescape say that money is not what it used to be. They remember when 100k was a lot of money, not spare change. So why is that runescape gp is getting to be worth less and less? This is one of the things that i hope to explain, among other things, in this thread; as well as open up discussion and hopefully some suggestion on how to improve the situation. :D ------Contents page----- 1.Inflation and interest rates 2. Runescape Bank 3. Runescape Economy 4. What to do about the situation ------------------------------------------------------------------------------------- Inflation and interest rates: To understand the economy of Runescape one must first understand two fundamental concepts of economics, inflation and interest rates. Interest rates in the U.K. are governed by the Monetary Policy Committy which sets the Bank of England's rates. Because the Bank of Engand is the nation bank, i.e. it lends money to all the other banks, it determines how much money, effectively, a bank is going to charge you if you lend money from them. Interest rate changes have many causes and effects and inflation is chief among reasons for both the former and the latter. Inflation is a rise in the general level of prices, as measured against some baseline of purchasing power. In mainstream economics inflation is caused by the interaction of the supply of money with output and interest rates. In general, economists divide into two camps: those who believe that monetary effects dominate all others in setting the rate of inflation and those who believe that the interaction of money, interest and output dominate over other effects. ------------------------------------------------------------------------------------- Runescape Bank: The runescape bank, however, sets no interest rates whatsoever because it does not lend money. Instead it stores items and money for 30gp. It is, in economics terms not a bank, rather just a limitless warehouse for people to store their goods. This is the crux of the whole problem, however. Because runescape is an artificial world there is a limitless supply of gp, being generated either in goods, i.e. item drops, or in money, from NPCs to dead monsters. There is no goverment to define interst rates and keep inflation in check, and there is no bank to keep interest rate at a level which ensure financial stability. The outcome; gp becomes less and less expensive and therefore, theoretically your items should become less expensive. However becuase the generation of gp is so high and inflation is so high, if you are an active player, then this has no bearing on you. Everyone gets more money, but the money is worth less. Take the example of Gregechnida in the Tip.It times (which i am a huge fan off, by the way! :mrgreen:). He stopped playing for 2 years and so his money was much less than when he was an active player. Perhaps this is just an idea of Jagex to make sure you keep paying and playing? ------------------------------------------------------------------------------------- Runescape economics It might be a bit tenuous to say that economics is all down to supply and demand but it seems that Runscape economics is based entirely on that. There is an always increasing demand for items, in new players, and there is an always increasing supply for items, drops from monsters will always outweigh the loss from players dieing. People always level up and so will be able to afford more expensive items. This means that over time items will lose their value. We have seen this everywhere, one of my friends made his money from being the 2nd ever person to reach level 85 slayer. He made a fortune by selling abby whips for 36 million each, now they're worth 2.3. However Jagex has tried to change things. Dragon chains went from 30 mill to 20 mill, then they upgraded KQ, went back up to 30, now there worth 16 mill. This means that there are very few investment oppurtunities. There are no long term buys (apart from Rares) which will mean that you gain money. No investment oppurtunities stifles economic growth and so items get less and less in value and more money is in the economy, it is not a sustainable system. ------------------------------------------------------------------------------------ Suggestions I dont know what any long term solution is but i think that everyone can take heart in the fact that the economy has not collapsed in 5 years, despite what economic theory would suggest so perhaps none is needed. However it is rather annoying that my d chain is only worth 16 mill, when i bought it for 22! :wall: Never mind :)