winter wrote:
However, with less Neopoints in the economy, there are less neopoints to spend, forcing sellers to reduce prices and therefore allowing people to purchase the item at a price reasonable compared to what they can earn.
In an ideal world, that's absolutely correct. One thing you failed to mention, though:
by reducing the neopoints available in the economy, you get an instant decrease in liquidity, in terms of cash available in the marketplace. However, you won't get a correspondingly severe decrease in prices of commodity goods, things like Moehog skulls or sought-after paintbrushes. This is because many sellers who have those items for sale will be reluctant to let them go for less money than they paid for them.
This equals: Less available cash money, same prices or moderately lower prices.
At the same time, you'll get a lot of people who have money holding onto it. This will lead to a decrease in money changing hands.
Less money changing hands, PLUS less available money, creates (ta-da!) a recession.
There's a strong psychological component to recessions that makes them worse than they normally would be under "ideal circumstances," because people, buyers and sellers both, are very greedy. The best way to counteract the recession would be to add more money to the economy, but that puts us right where we are.
So, the best way to make things more affordable is to make more of them. Winter is absolutely correct about that.
Chakra_ wrote:
Ok... So... We should have limits like this:
Shop: Max 5Million
Trading Post: 2.5Million (800k Is TOO Little)
Auction: Unlimited
Right?
No, TP should always be more than shops. Would be better to have it be something like this:
TP: 2.5 mil cash, plus up to 10 items.
Shops: 500k cash.
Auctions: unlimited.
I agree, though, that 800k is a laughably small amount to be a maximum cash offer.