huge inflation!

[FooK-A-Ji]

No, if money goes down, value of items will go up to counteract it.

 

 

 

ya but u never know with rs, a game which's economy is run mainly by people still on some sort of "allowance" at home..

[Etta]

it's deflation and its all down to the duel arena update

 

 

 

So far ive lost 5.4m off my red mask.

 

 

 

depressing :cry:

[qeltar]

Inflation refers to a systemic increase in prices in an economy. There is no inflation in Runescape.

 

 

 

Prices on rares go down due to updates because they are run up speculators. It's essentially a bubble market and is sensitive to these changes.

[icecube]

No, if money goes down, value of items will go up to counteract it.

 

 

 

ya but u never know with rs, a game which's economy is run mainly by people still on some sort of "allowance" at home..

 

Oh I meant the general concept of inflation.

 

 

 

I don't even want to try to predict how things work in Runescape. @_@

[Goldenjkered]

Inflation is when a currency (e.g runescape gp) decreases in value, and so therefore everything takes a price hike. A good example of this would be Germany in the 1920's, where the mark, basically became near worthless, and to buy a loaf of bread you would need a wheelbarrow full of notes.

 

 

 

P.S. I'm wondering why Veracs has gone up. Surely more people would be trying to sell, considering 1 vs 1 staking has been abolished, and Veracs was the main armour used :-k

[dolomite129]

Prices on rares go down due to updates because they are run up speculators. It's essentially a bubble market and is sensitive to these changes.

 

 

 

Yes, exactly. (I was trying to point that out on another thread but couldn't find the right words for it, probably because you already did. :P) Anyway, it seems the only reason prices change is because of rumors. It's kind of ironic that the people who don't want the prices to change like that are the ones who are causing the problem. :-k This seems to be happening right now with the rares market and the Duel Arena. People don't want the rares to go down in price anymore, (well, the sellers anyway) and yet they're the ones who keep selling for less and less just because someone said all the rares are dropping like lead balloons.

[monkeyboo2]

It's not inflation.

 

 

 

Many items are decreasing in value (mostly "rare" items like GS and discontinued) because staking is dead.

 

 

 

And I've found the opposite occurring with Barrows, most prices went up, like Veracs from 3.0m - 3.6m+. Great way to make money if you were a Barrows merchant.

 

 

 

i would have thought barrows would go down, because their primary use was for duelling, and thats gone, making them less useful/less in demand items.

 

That's true but "dueling" is not dead, staking is. Many people are using barrows for the tournaments now.

 

 

 

Hnmm, still i wouldn't think that that will last, duelling tournaments in barrows (that cost money to use) for small prizes if you win, may not be profitable.

[oropher]

it's deflation and its all down to the duel arena update

 

 

 

So far ive lost 5.4m off my red mask.

 

 

 

depressing :cry:

 

 

 

Don't worry, just keep it, they will go up eventually.

 

 

 

 

 

I don't think huge inflation would even be possible in rs. Many basic items have a fixed store price, so there would only be inflation on a few items.(like rares).

[BloodArgon]

Everything is in your head. One GP is still one GP. People are stupid in thinking that because it takes more time to get something, it should be worth more. This is stupid. Its the merchanters, I swear. Always wanting money, and needing sales so they sell and buy LOWER, making things go down

[sithlord_man]

Woot the economy is crashing!

 

 

 

Well, maybe not; just means less supply and demand, or people care less about rares

[SwreeTak]

No, this is not inflation. Inflation is when the money is worth less. And the Rs economy is not going to crash, at least not for a while :)

[Solidus_77]

Wow, looks like someone needs to present the REAL definition of inflation

 

 

 

Inflation: A sustained rise in the price of all items OR a decrease in the value of a currency.

 

 

 

So there are three misconceptions in this thread alone (and it's why I HATE when people try and prove that there is inflation :roll: )

 

 

 

First of all, the thread author doesn't know what he's talking about. Inflation is when there is an INCREASE in the price of items, not a decrease

 

 

 

Second of all, to the people debating on page 1. Yes it can be defined an increase in the price of items, but it can also be defined as a decrease in the value of a currency, because when a currency is worth a lot less, it takes more of that currency to buy items.

 

 

 

Third, there is absolutely NO proof of deflation here either. Inflation (or deflation) have to do with the change in price OF ALL GOODS in an economy. You cannot demonstrate that there is inflation/deflation in an economy by just demonstrating a change in price for ONE good, you must do it for all goods in an economy. Now, the reason why I doubt there is any deflation now is that while luxury items have decreased due to staking being killed, items such as barrows have increased in price. There are tons of goods that fit neither these two categories, and they all remain unaffected. All we have here is a change in price in response to the duel arena change. Stop making exaggerated theories about how the price might crash.

 

 

 

Now for individual responses

 

 

 

Everything is in your head. One GP is still one GP. People are stupid in thinking that because it takes more time to get something, it should be worth more. This is stupid. Its the merchanters, I swear. Always wanting money, and needing sales so they sell and buy LOWER, making things go down

 

 

 

What the hell? One gp doesnt remain one gp if the value of one gp changes. If it takes more time to get 1 gp, it will be worth more. Why do you even think of blaming the merchants. They are NOT the ones manipulating the price, and they don't bring the market down by buying for a lower price. That's just a myth created by people who hate merchants.

 

 

 

ya but u never know with rs, a game which's economy is run mainly by people still on some sort of "allowance" at home..

 

 

 

Obviously you have no idea how economics works or you would know that, with economics the age of the people does not make a difference.

 

 

 

No, if money goes down, value of items will go up to counteract it.

 

 

 

Not quite sure I can agree with that, the value of items does not "counteract" the value of the currency, they are both the same thing.

 

 

 

if money went down in value items would too?

 

 

 

If money is worth less, it takes more of that money to buy an item, therefore the item would INCREASE in value.

 

 

 

More high level people around, which means more of them can get the harder to get objects. Most likely the reason behind the ongoing deflation.

 

 

 

Oh so all of a sudden on tuesday a bunch of people became higher levels all at once, which caused more demand for items.... :roll: No. It's the change in duel arena that caused this, not a sudden increase in the number of higher leveled players.

[l337ubernoob]

I think we can agree that whatever happened to the prices, is mostly caused by the staking update, and probably also a little influenced by the greatly hyped, close-to-be released, Grand Exchange.

 

 

 

What I must add to the discussion so far, is that in rs, Gold buys items. Therefor, gold is our measure of valuation. Items themselves do not buy money; People are willing to pay money for items because they value those items (in the case of RS, in gold). Therefor, I would say, we cant speak of money decreasing or increasing in value. There is no other currency we can compare it with like in the real world, where you can say that for example the euro has lost value in comparison to the dollar (although it has been the other way around lately as those who are interested in economics probably know). Therefor Id like to say again, that theres no such thing as money loosing value.

 

 

 

What we can say however, is that the same amount of gold can now buy us more goods then before, which is pretty much the definition of DEflation.

 

 

 

I understand some people with an economic background here will not agree with me on my belief that theres no such thing as money loosing (, or gaining for that matter) value: so be it. All economists know that there are in most cases a lot different theories for each specific economic 'problem': some are just more popular then others.

 

 

 

Well, thats what I have to say on the whole thing, lets keep the whole discussion nice and clean :)

[anonymouse_]

 

So far ive lost 5.4m off my red mask.

 

depressing :cry:

 

 

 

 

Annoyed that my santa has gone down in value by 3 mill -.-

 

Ffs stfu, I lost like 60M on my hat -.-

[Rebdragon]

I understand some people with an economic background here will not agree with me on my belief that theres no such thing as money loosing (, or gaining for that matter) value: so be it. All economists know that there are in most cases a lot different theories for each specific economic 'problem': some are just more popular then others.

 

:lol:

 

 

 

Honestly, good luck finding a sane economist that agrees with you on that dude.

 

...

 

Rather than make a long post on something so self-evidently incorrect, I'll ask you to look into the history of the German economy, before and during WWII, and then come back and talk about money not losing or gaining value. Try typing in "hyperinflation" on Google, bet you'll find the info. That, or if you live in the US try and examine your own economy. The inflation rate is about 4% a year here, which means it's going to take less than 20 years for the dollar to be half as valuable as it is today.

 

 

 

Lil' research does one good :P .

[coenvg]

Lol, Dragon axe is an exeption, its more like going up at the moment :)

[Solidus_77]

I understand some people with an economic background here will not agree with me on my belief that theres no such thing as money loosing (, or gaining for that matter) value: so be it. All economists know that there are in most cases a lot different theories for each specific economic 'problem': some are just more popular then others.

 

 

 

Each economist may have their own theories, but they all know economics and base their arguments on economics. Yours is completely baseless, in fact you don't even try to support it; you just try to justify it. Go find an economist that disagrees with the basics of economics :lol:

 

 

 

Currency is an economic good. Currency has a market. There is a supply and a demand for currency. If the demand for currency falls, or if the supply of currency increases, the value of the currency (when measured against the price index or other currencies) will be different.

 

 

 

What I must add to the discussion so far, is that in rs, Gold buys items. Therefor, gold is our measure of valuation. Items themselves do not buy money; People are willing to pay money for items because they value those items (in the case of RS, in gold). Therefor, I would say, we cant speak of money decreasing or increasing in value. There is no other currency we can compare it with like in the real world, where you can say that for example the euro has lost value in comparison to the dollar (although it has been the other way around lately as those who are interested in economics probably know). Therefor Id like to say again, that theres no such thing as money loosing value.

 

 

 

The price index is used to measure inflation. The price index is basically a "general" price, that can be used to measure currency. But around here people prefer not to think about economics. To them, increase in price of only one item = inflation :roll:

[Will H]

It probably is GE paranoia, as mario_sunny said. That, plus staking has been destroyed, so it means that there are less accounts with very high amounts of money (as a result of a successful high stake), so they can't afford the very high level items. And less demand = lower prices. Money at the moment is more evenly spread.

[Lenin64]

Actually, I believe it is called the GrEx :thumbsup:

 

 

 

*sigh* all this price reduction and dfh is going up #-o

 

 

 

It's all because of Black Friday. Huge discounts

[Star_Fox]

 

So far ive lost 5.4m off my red mask.

 

depressing :cry:

 

 

 

 

Annoyed that my santa has gone down in value by 3 mill -.-

 

Ffs stfu, I lost like 60M on my hat -.-

 

 

 

 

 

owned.

 

 

 

what is it? is the money getting worth more or are the items just becoming worth less? my zgs is lowered 6m+ and all barrows and rares are lowering to, anyone knows why?

 

 

 

actually, barrows is going up, i've seen veracs going for 3.6 instead of 3.1 and guthans going for 7+ instead of 6.7.

[RU_Insane]

If price is coming down it means that RS gold is worth more.

 

 

 

Under normal circumstances I'd say you're right but the strong Canada dollar is worth more than the GreenBack and the GB has lower prices. :)

[12markkram34]

I think the word is deflation.

[l337ubernoob]

Solidus, I already thought you'd be the one to reply to my little post, considering you seem to be the one with the most economic education that had posted on this topic so far. I dont know how to use seperate quotes, and I dont like to spamquote the whole thing, so I decided not to quote at all :)

 

 

 

I realise I've made an important mistake in my earlier post. A point I shouldve made was, that the market for currency in runescape is not like the market for currency irl. We both know the worldwide currency market is as real as it is and that money can lose or gain value in that market, in terms of other currency. My point was, that there is no such thing as money loosing value in Runescape, because theres is no real competition for the gold pieces we all use, and thus no other currency to compare it to. Of course, there are things like trading sticks or tokkuls, but those don't have an impact big enough to speak of a real currency market in rs.

 

Ergo, my point was: In Runescape, there is no such thing as currency losing value.

 

 

 

I can go on with bragging about how good I know the whole supply demand theory and the theory of currency valuation, but Im sure you know that as well, or most likely even better, as I do, so it has no place here.

 

 

 

I hope you see my point now, although you still might not agree. I was not trying to completely pass on the basic rules of economics, Im just trying to make a distinction between real world economics from Rs economics, as in my opinion the Rs economy forces a slightly different approach.

 

 

 

And yes, I agree that people have used the word inflation completely wrong. Good thing you have at least agreed with me on that point :)

[Thus]

LOL INFLATION? rofl

 

 

 

Hey kiddo inflation = money is worth less not more

 

 

 

it seems no one knows the meaning of inflation anymore

[Dexek]

Just a mixture of the Duel Arena Update, anticipation of the GE, and a small group of price manipulators. All of this control the market, mainly the rares. My plan is stock up, wait, and watch the profits roll in. :