59 replies to this topic

[val]

Wrong. You're mixing inflation and deflation up, banning a mass amount of accounts with a mass amount of neopoints or high valued items would increase the price, therefor increasing inflation

Wrong. Your definitions are correct, but you're application is wrong. 

Economists generally agree that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply.

If there is more money in the economy, every individual unit is worth less. Because demand stays the same, prices for everything go up (because, every unit of currency is worth less, so it takes more of each unit to equate to the worth of the good). 

Taking goods out of the economy does not cause inflation. Because the supply is reduced of the good, and demand remains the same, the price goes up. Just because something causes the price of something to go up, does not mean it's inflation. That's just simple supply and demand. 

Generally inflation deals with currency, not goods. But because Neopets often involves liquidation of assests, it can be applied in a way, but you're doing it incorrectly. 

Deflation is taking money out of the economy, and in a normal economy this would result in a reduction of income. Since the population as a whole would have less currency, prices and services in general would fall resulting in deflation. 

[Boggart]

regardles...

Things are shit expensive.

[GreenScissors]

Not with an aber. Everything seems cheap

[Jakerz]

Wrong. Your definitions are correct, but you're application is wrong. 





If there is more money in the economy, every individual unit is worth less. Because demand stays the same, prices for everything go up (because, every unit of currency is worth less, so it takes more of each unit to equate to the worth of the good). 

Taking goods out of the economy does not cause inflation. Because the supply is reduced of the good, and demand remains the same, the price goes up. Just because something causes the price of something to go up, does not mean it's inflation. That's just simple supply and demand. 

Generally inflation deals with currency, not goods. But because Neopets often involves liquidation of assests, it can be applied in a way, but you're doing it incorrectly. 

Deflation is taking money out of the economy, and in a normal economy this would result in a reduction of income. Since the population as a whole would have less currency, prices and services in general would fall resulting in deflation. 

Hm I'm not sure how Neopets items work really but I agree with your point now that more neopoints into the economy would raise the price of items, but I still believe that even though my theory is "supply and demand", it's still a form of inflation. If 500 people want 10 cars.. the price of those 10 cars will inflate

[Sweeney]

Hm I'm not sure how Neopets items work really but I agree with your point now that more neopoints into the economy would raise the price of items, but I still believe that even though my theory is "supply and demand", it's still a form of inflation. If 500 people want 10 cars.. the price of those 10 cars will inflate

It's just the difference between common use, and specialised use, of the word "inflation".

[manophear]

The thing is, val, is that your analogy doesn't quite work. Yeah, freezing people gets rid of items, etc., but the main thing is that usually ABers tend to have high amounts of NP and low amounts of rare items (high turnover rate of money). If TNT freezes an ABer they're getting rid of lots of money but not many items

[crazytaka]

yeah neopets is no longer fun without abrosia i would never play it legit ever again unless it was like 6 years ago with specific shop restock times and more random cool events

[Elindoril]

yeah neopets is no longer fun without abrosia i would never play it legit ever again unless it was like 6 years ago with specific shop restock times and more random cool events

I'm going to ask you kindly to read this before posting in any further threads.

[val]

Hm I'm not sure how Neopets items work really but I agree with your point now that more neopoints into the economy would raise the price of items, but I still believe that even though my theory is "supply and demand", it's still a form of inflation. If 500 people want 10 cars.. the price of those 10 cars will inflate

Yes, the price would "inflate", but that's just another way of saying the prices goes up.The economics term "inflation" means something else . What you're referring to is a shift in the supply curve, which I will conveniently illustrate for you here.



That concludes economy 101. lol

It's just the difference between common use, and specialised use, of the word "inflation".

Yes, exactly. We're talking economic inflation, not just inflation being used in the vernacular as a synonym for increase

The thing is, val, is that your analogy doesn't quite work. Yeah, freezing people gets rid of items, etc., but the main thing is that usually ABers tend to have high amounts of NP and low amounts of rare items (high turnover rate of money). If TNT freezes an ABer they're getting rid of lots of money but not many items

This is the OP's theory. I'm just trying to explain the concept. And that's not necessarily true. ABers get a lot of neopoints from what they AB, but it's essentially to get more shit, isn't it? Whether it be wearables, gallery items, whatever. And anyway, cutting neopoints from the system is a much more effective way to combat inflation versus freezing items. Since taking out rare items only increases the value of that one item, versus increasing the value of the economy's currency as a whole.