PY = MV is the key economic equation at work in this scenario. The standard argument is that M (the money supply) drives inflation. Your argument (which is possible) is that in the days since launch, V (velocity — essentially how often a dollar is spent) has increased. If it has, this is inflationary.
Over longer periods, this decision will almost certainly increase M as well. Unlike dollars, players can increase the money supply through work (eg, dailies, dungeon farming, etc). Since the amount of gold some players need has increased (from consumables + repairs to consumables + repairs + token), the incentive to work, and thus increase the money supply, goes up as well. This is also inflationary.
So I agree, the economics do suggest that prices could have been immediately impacted. Whether or not they have been is an entirely different story, obviously. But the real inflationary pressure from the decision will only be obvious over time.
We will see how it goes but for now if there’s any price increases, it’s just reactionary because there’s no more gold in the economy, gold is just moving around. Prices should stabilize soon until new phase.
cope and seethe over your stockholm syndrome buddy, im here for the raiding content and my social circles, nothing more, i will happily quit the game once i get bored of icc and you mazed junkies can enjoy the sewer you’re squatting in without me giving reality checks
wrong insult, thats why im quitting in a few months, to touch grass, i hope your bank balance is okay, paypigging in mmos means your personal financial decision making skills are extremely poor lmao, hope your mcdonalds job doesnt get taken over by robots!
Darkmoon cards are a very volatile item because of a bunch of factors, the prices of the herbs used to create them haven’t increased at all so its unlikely to be inflation.
A. Not many people create them and not many people buy them and they are completely useless without the entire set - which often causes certain cards with the exact same rates to cost more to buy.
B. Timings, a few weeks ago was right before the faire - a lot more people create the decks during this time trying to make greatness so we end up with a dump of the lower tier deck’s cards
C. Joyous journey spiked the demand but the supply is still low
I don’t think that people couldn’t afford 50g darkmoon cards a week ago but now can because of the wow token
Also, trying to explain the following apparently is difficult.
No, gold quantity didn’t increase beyond farming additions.
Yes, “velocity” of gold is increasing currently within the economic confines of individual servers.
Yes, gold on specific servers has increased
– Bob on Bene buys a token, that gold goes to Jane on Windseeker. Windseeker’s gold quantity has artificially increased from the sale, potentially leading to inflation.
AH and GDKP whales horded gold. It feels like there’s more in circulation where there actually isn’t. (Exceptions see point 3) People were just hording that much gold that there is a temporary inflation jump. Once the capitol reaches the natural velocity level within the server’s economy, prices will go back down again.
People play with the supply/demand aspects in WoW just like in real life, albeit works differently, the core fundamentals are the same. In this case, we’re realizing capitol was one of the items that was scarce, not just commodities or finished products.
Yeah, wow, you are really standing on your principles quitting in a few months, lol. Almost everyone in my guild is quitting then, as well as me. We all knew that before Wrath launched .
Old Blanchy prices have gone up slightly but nothing crazy… BoE prices should also go up now to help offset the consumable price increases. Belt of the titans was selling for about 3500g Now I can sell them for 4500+ because the folks who wanted one last week but couldn’t afford it will buy a token now.
Its not that the items will be worth more, its that the value of the currency (gold) has been diluted by adding gold to the market that was not made on the back of the comodities. Its exactly how our governments have helped drive up inflation IRL thru covid. Injecting free cash into a market will create a lower value of the currency making it take more currency to buy the commodity. This is how inflation works, weather it be in game or real life. its too soon to see the result of it, but give it 2 weeks to a month and prices will be exponentialy higher once the currency starts feeling the influx of the un earned cash intake.
plus they strait up lied to us by saying they would never do it. thats a moral thing they have to live with. The lied to their player base and have to deal with it. yet they are suprised by all the back lash
.