2011-04-15, 06:42 AM
Haseo Wrote:Okay, so it encourages botting. How does one link it to inflation though?
People buy mesos > people now have more money than before > see something in FM (at x mesos, equal or more than equilibrium market price) > buy without caring for the price (since you are now richer) > items sold > other sellers see items sold at x mesos > now all sellers hike prices up to x, hoping to gain more > inflation
The more you have money, the value of it simply decreases, you just don't appreciate it as much as before.
The same reason why monetary policy is practiced in moderate, pump too much liquid money into market, and $3,000,000 will only buy you a piece of bread, take Zimbabwe for the extreme instance.