Theories are meaningless when evidence contradicts them. Prices aren’t going up, they are going down.
By definition that is deflation.
But great poem
Bard class confirmed.
2 Likes
If you don’t understand the concepts you won’t understand the numbers across multiple consumer markets.
What you’re saying doesnt even translate in the game, prices are LITERALLY dropping.
The evidence is against your theories…
You want to argue price inflation go prove how over supply causes inflation.
Overproduction, or oversupply, means you have too much of something than is necessary to meet the demand of your market. The resulting glut leads to lower prices and possibly unsold goods.
This is EXACTLY what bots do.
This isn’t hard to comprehend.
Such a classic forum response. Rather than show your evidence or support your argument with facts, just insult the opposing view.
Maybe that should be your next poem
1 Like
You mean worst.
1 Like
Bots and inflation should never be used in the same sentence because they contradict each other.
Bots oversupply which is literally the exact opposite of how inflation happens
2 Likes
Dropping on 1 item, a raid consumable, at the end of the phase where players are stronger and don’t need them. Yet other items are going up still.
You’ll be school come phase 2 when gear and consumes will be astronomically higher than phase 1.
Don’t worry, I’ll necro-bump this post to remind you when it happens. 
Unless you a forum bot on a forum crusade against GDKP
Then you just insert the word inflation incorrectly in order to make sure the chicken littles know how serious this is
1 Like
Right, so when demand exceeds supply, inflation will occur
Thanks for setting us all straight
2 Likes
The only thing that’s going to keep worth is Max level greens and blues.
You can argue Mana potions currently are still high in price because they can’t be produced by anybody yet.
We literally don’t have the alchemy skill to craft the current best Mana potion but that will change next phase.
Next phase we will have the skill to be able to mass produce the best mana potion for that phase.
If you think one to two gold green items are inflation at max level I’m not sure what to tell you
1 Like
Yay he figured it out.
1 Like
Go learn about money and you’ll understand what’s going on in the gold economy of wow.
- Total Money Supply
- Velocity of Money
- Economic Output (GDP)
- Interest Rates
- Inflation Rate
- Government Stability
- Foreign Exchange Reserves
- Trade Balance
- Speculation
- Global Economic Conditions
- Geopolitical Events
- Market Sentiment
You just listed a bunch of economic buzz words. You are embarrassing yourself
Inflation is a straight forward concept. It either exists or it doesn’t
It currently doesn’t
Just stop
2 Likes
Thanks for the economic buzz words.
Those aren’t buzz words those are the literal factors that affect the value of a currency. Take any economics 101 class and you’d know.
You claiming you understand the gold economy without knowing any of those factors prove you’re simply ignorant, a liar or a troll. Pick one.
This is going in circles
You can throw as many economic theories out there as you want.
But inflation isn’t a theory, it’s a measurement of prices. One which has no dependency upon whether or not we understand your deep knowledge of economics
It doesn’t exist. Stop telling us it does
It goes in circles because you are ignorant. You don’t know economics. You think that’s buzz words because you don’t have an education.
Here you go! I’ll give you 2 formulas that economist use for money supply and velocity of money:
Money supply
The total money supply in an economy is typically represented using various measures (M0, M1, M2, etc.), and the formula for each measure can vary depending on the financial institutions and assets included. However, here’s a general representation of the formula for M1 and M2:
M1 (Narrow Money Supply):
M1 includes the most liquid forms of money in an economy. It typically consists of:
- Currency in circulation (Coins and paper money)
- Demand deposits (Checking accounts)
- Other liquid assets that can be quickly converted to cash
The formula for M1 is relatively simple:
M1 = Currency in Circulation + Demand Deposits + Other Liquid Assets
M2 (Broad Money Supply):
M2 is a broader measure of money supply that includes M1 and other less liquid assets. It typically consists of:
- M1 (Currency in circulation, demand deposits, and other liquid assets)
- Savings accounts
- Time deposits (Certificates of Deposit or CDs)
- Money market mutual funds
The formula for M2 is as follows:
M2 = M1 + Savings Accounts + Time Deposits + Money Market Mutual Funds
Please note that central banks and financial institutions may use variations of these formulas, and the components included in M1 and M2 can vary from one country’s definition to another. These measures help assess the overall liquidity and stability of an economy’s money supply.
—
Velocity of Money
The velocity of money (V) is typically calculated using the following formula:
V = (P * Y) / M
Where:
- V represents the velocity of money.
- P stands for the price level (usually measured by an appropriate price index, like the Consumer Price Index).
- Y represents the real GDP (Gross Domestic Product adjusted for inflation).
- M stands for the money supply (usually measured as M1 or M2, depending on the context).
This formula helps economists analyze how quickly money circulates in an economy to facilitate transactions.
Thanks for copying and pasting your google search
Neither of those tell you if inflation exists or not. You only do that by measuring prices over a set period of time.
This must be killing you to see how wrong you are
So auction house prices going down over time is inflation?
Thanks for clearing that up