Best way to fight inflation

[Dinner]

I keep my tax rate as low as possible, I never go bankrupt, and I try to install goveners when they become availible, however, I still struggle with inflation. I seem to constiently be faced with a choice between crushing poverty or hyper inflation.

I keep my tax rate down to try to stop inflation but then I lack the funds to maintain my arrmy. I then am forced to cut my army to virtually nothing causing my neighbors to start considering me a prime invasion target. Does anyone have any advice? What is the best way to combat inflation?

[ThePlagueRat]

If you wanna play peacefully while fighting inflation, you could set your military maintainance level to near zero and tax rate down, for instance 0.5. I dunno, have to try it out some more before I know if I'm right...
Do they really consider you a prime invasion target, once you do such demobilization to a large army?

It's however quick to mobilize the sleepers. (without producing) Three or four months should be enough time to launch a counterattack... That's what I heard, gotta try it out!

[St Leo]

No, your military salaries don't entere the AI's calculations.

[Dinner]

So my total number of military units enters the AI's calculations but the level of funding I place my army at does not? So if one is going to play peacefully it seems like a great way to save cash by underfunding the military.

[ThePlagueRat]

This, I think, is one of the great semantics in the game rules.
It's not an exploit, it represents the real balance of power.
Just imagine an enormous army caught off guard. Fall back, mobilize, plot, attack, negotiate... ?
You have to think strategically when you position that slider...

[Dinner]

I think your right. It is not an exploit mirely another consideration that a player must make in order to be successful in the game.