How do you deal with inflation?

[playshogi]

My inflation rate is 16% and climbing. Logically, I thought it was because I was running a deficit from reserves while running 100% science. So, I dropped science to 90% to run a surplus, but it didn't help. I hope it's not caused by having a big surplus, which I do, compared to the AI civs. I'm bankrupting all of them by selling tech.

[calarrick]

there's inflation in the economic model now!?

wow... I hadn't noticed that yet.

[Japher]

buy gold futures

[Simplicity]

I'd recommend purchasing back some of your bonds. It'll restore confidence in your money, which will lead to a stronger currency. You really shouldn't have been running such a large deficit for so long anyways.

[duodecimal]

Buying back bonds doesn't work if you're monetizing the debt. If your government's treasury writes a check in fiat money (available with Printing Press) to buy bonds issued by itself, that'll feed inflation.

What you need to do is draw down credit by forcing banks to up their reserves, but that's not available until Corporation, and if you are using a Mercantilist civic, you'll cause unhappiness based on the number of commerce specialists who'll claim that your reduction of inflation is 'deflation'. This is temporary until the excess debt/credit is soaked up, and once it's cleaned out of the system you'll have a much healthier empire.

[krytonix]

omg, economics nerd alert.

I too am wondering about inflation (in-game that is!), so if anyone can shed some light on it that would be great.

[Sartaq]

I just hit some heavy inflation in my game. Even after building tons of cottages, windmills, banks, markets, and getting printing press I'm barely breaking even on 80% research.

My army and civics are less upkeep than the inflation!

City maintenance is killing me though, I only have 6 cities but they are well spread out.

[ZanThrax]

I've actually found the inflation business in the commerce advisor screen now; of course I have no idea how it works, but it adds a lot to my costs.

[Aeson]

Inflation is mainly a counter for being big and/or rich. The more "stuff" you have, the higher inflation goes. There really isn't a counter for it, other than not having the "stuff" in the first place.

It can really be a beast on the way to Domination victories.

[iampat12]

Are you guys kidding? Is this game really this indepth, or are you just having fun with the rest of us?

[Sartaq]

So there is nothing you can do about it? I'm not even close to being rich lol. I'm #1 in land area though. I guess I regret trying to grab a big chunk of land from the start

[vovan]

Originally posted by Aeson
Inflation is mainly a counter for being big and/or rich. The more "stuff" you have, the higher inflation goes. There really isn't a counter for it, other than not having the "stuff" in the first place.

It can really be a beast on the way to Domination victories.

So that's how the little civs manage to have greater score than big civs! I've been wondering where this inflation business came from...

I think a "Game Concepts" 'Pedia entry on Inflation is in order.

Vovan

[Odin]

There's INFLATION in Civ4?!?

[MattPilot]

Yes... Press F2 for financial advisor

[DeepO]

Originally posted by Sartaq
I just hit some heavy inflation in my game. Even after building tons of cottages, windmills, banks, markets, and getting printing press I'm barely breaking even on 80% research.

Of course, what did you expect. Cottages etc give commerce, 80% of which you're transforming into beakers. Moreover, you build markets, but they will only work either on that 20% tax you're giving them, on shrine income, or on gold from merchants.

80% research is rather high in CIV. I consider anything above 50% good...

DeepO