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Re: Feb. 21, 2006 (JST) Update Details
Ok, didn't see Xalioniaf pick this part up so I'll give it a go. Basically inflation is loosely defined as too much money chasing too few goods. IE. last week there were 100 silk threads on the AH, and there was roughly 1 million gil in the hands of a random group of players. This week if there are also 100 silk threads on the AH but now there is 10 million gil in those players' hands, silk threads are going to be worth much much more. Simply because those players can now afford to pay much more for silk and will even be willing to buy at prices that would've seemed ridiculous the week before.
What Xalioniaf means by "sinks" is things that take money out of the economy to combat inflation. This makes more sense if you look at it in terms of the opposite effect, "faucets", or things that put money into the economy. Like say beastmen, which always drop gil, or certain quests that have rewards in gil instead of items.
If the amount of gil put in place by a faucet is taken out on the other end by a comparable sink, then the prices for goods and services across the server will remain unchanged over time. Chocobo prices were for a long time the best reliable sink in the game, as anyone willing to pay 3.5k for a chocobo at Mea was probably going to earn at least that in Onzozo or Bibiki Bay and this would prevent vast influxes of money from the sale of crystals/gil drops.
As much as it sucks having to pay large sums of money to an NPC for something, doing so ensures that the prices of everything else remain relatively stable over time, as this ultimately offsets money put into the game by the faucets. This is why it's extremely unlikely SE will ever drop the price for Dynamis Hourglasses below 1 million gil. Every single Dynamis run is a way SE can make sure loose gil is being taken out of the economy.
Originally posted by Darkhound
What Xalioniaf means by "sinks" is things that take money out of the economy to combat inflation. This makes more sense if you look at it in terms of the opposite effect, "faucets", or things that put money into the economy. Like say beastmen, which always drop gil, or certain quests that have rewards in gil instead of items.
If the amount of gil put in place by a faucet is taken out on the other end by a comparable sink, then the prices for goods and services across the server will remain unchanged over time. Chocobo prices were for a long time the best reliable sink in the game, as anyone willing to pay 3.5k for a chocobo at Mea was probably going to earn at least that in Onzozo or Bibiki Bay and this would prevent vast influxes of money from the sale of crystals/gil drops.
As much as it sucks having to pay large sums of money to an NPC for something, doing so ensures that the prices of everything else remain relatively stable over time, as this ultimately offsets money put into the game by the faucets. This is why it's extremely unlikely SE will ever drop the price for Dynamis Hourglasses below 1 million gil. Every single Dynamis run is a way SE can make sure loose gil is being taken out of the economy.
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