4 ms·

I have no idea if this was a bug or a failure model but it seemed I was doing decent until everything started failing all at once. Orchards running out of busin

I have no idea if this was a bug or a failure model but it seemed I was doing decent until everything started failing all at once. Orchards running out of business etc. LE: I tried another round. Put the interest rate at -0.5 and just left it there. > I fought inflation in SimCB and my economy produced 442486 :apples:

omega3 4y ago
Same thing here.
BenoitEssiambre 4y ago
If you hit too much disinflation/deflation things can go sour pretty quickly. This is a bit exaggerated in this model as there are only 10 businesses and there can be a domino effect as 10% of the economy fails at a time. You can prevent it if you manage to counter deflationary pressures fast enough. It helps to slowly creep up interest rates up when the economy is going well so you have more space to lower them aggressively during shocks.
- ThalesX 4y ago
  Cool project, congrats on putting it out in the wild. > You can prevent it if you manage to counter deflationary pressures fast enough. Iirc, it was a matter of < 10 months from good to gutter.
Eji1700 4y ago
Interesting. I settled on the same strat after a few ticks of seeing what was possible, and got 442524. I haven't looked at the code, but I guess it's fairly consistent then.
BenoitEssiambre 4y ago
Since this was happening to a lot of people, I added a few paragraphs to the blog post to help explain it: "One common experience for new players is they start the game, prices creep down, one orchard goes bankrupt, then the other ones quickly fall like dominoes and unemployment goes to 100%. This dynamic is exaggerated in SimCB. What happens is that when an orchard goes bankrupt, that's ten percent of the economy going offline. Not only that but if that business had loans, those loans get reversed by a negative dividend imposed on people. In a real economy this would happen through banks or other lenders who would be forced to take the hit (since you can't default on the central bank). In any case this results in an instant shrinking of the money supply. The negative dividend acts like a one time tax, people have less money in their bank accounts, spend less on apples, prices drop quickly which makes the other businesses less profitable and go bankrupt. In a real economy, usually not 10% of businesses would go down in one go and the central bank would have more time to react. Governments might also take on debt, implement bailouts etc. to help smooth out the situation. I could have implemented some kind of automatic government stabilizer. Or I could have made an economy with a hundred businesses instead of ten, so that these effects were more gradual. Some things to maybe try in future versions. "

omega3 4y ago

Same thing here.

BenoitEssiambre 4y ago

If you hit too much disinflation/deflation things can go sour pretty quickly. This is a bit exaggerated in this model as there are only 10 businesses and there can be a domino effect as 10% of the economy fails at a time. You can prevent it if you manage to counter deflationary pressures fast enough. It helps to slowly creep up interest rates up when the economy is going well so you have more space to lower them aggressively during shocks.

ThalesX 4y ago
Cool project, congrats on putting it out in the wild. > You can prevent it if you manage to counter deflationary pressures fast enough. Iirc, it was a matter of < 10 months from good to gutter.

Eji1700 4y ago

Interesting. I settled on the same strat after a few ticks of seeing what was possible, and got 442524. I haven't looked at the code, but I guess it's fairly consistent then.

BenoitEssiambre 4y ago

Since this was happening to a lot of people, I added a few paragraphs to the blog post to help explain it: "One common experience for new players is they start the game, prices creep down, one orchard goes bankrupt, then the other ones quickly fall like dominoes and unemployment goes to 100%. This dynamic is exaggerated in SimCB. What happens is that when an orchard goes bankrupt, that's ten percent of the economy going offline. Not only that but if that business had loans, those loans get reversed by a negative dividend imposed on people. In a real economy this would happen through banks or other lenders who would be forced to take the hit (since you can't default on the central bank). In any case this results in an instant shrinking of the money supply. The negative dividend acts like a one time tax, people have less money in their bank accounts, spend less on apples, prices drop quickly which makes the other businesses less profitable and go bankrupt. In a real economy, usually not 10% of businesses would go down in one go and the central bank would have more time to react. Governments might also take on debt, implement bailouts etc. to help smooth out the situation. I could have implemented some kind of automatic government stabilizer. Or I could have made an economy with a hundred businesses instead of ten, so that these effects were more gradual. Some things to maybe try in future versions. "