Farming Does NOT Cause Inflation

Grimpaw: Excellent observation. I hadn't thought about all the items disappearing through 'churn'.

It would be interesting to know what tools ANet employs to track the state of the economy?
I know Star Wars Galaxies support had quite extensive statistical analytical tools to help them keep inflation and mudflation under control, but I wonder if Anet ever expected the economy of GW to be problematic.

Simoo: I suspect economists could find much of real-world interest by winnowing the statistical logs of MMORPGs with big economies. Perhaps they already do.

Inflation is caused by too much gold chasing to few items. Most monks saved their gold. They had little to buy! People who buy ebay gold and buy everything causes inflation. They never had to earn their gold, so they spend it. In fact farmers brought down prices. I sold items just to get rid of them at great prices! The average eternal shiled was about 3k, now I see em going for 750 gold. Y? Because farmers sold em off cheap.

"So, the REAL economy isn't based on gold per se, it's the supply and demand of ITEMS that cause inflation."

Supply and demand do not cause inflation! An increase in one or the other holding the other constant only cause one time price changes that balance out.

Example
Tacos are $1
100 people eat tacos a day.
Tacos are found to ward off illness.
Demand for tacos increase.
This causes prices to rise.
Supply adjusts to the new demand, lowering prices.

Inflation
10 people have $100 to buy food.
Market forces are stable.
Everyone gets a raise of $10.
Everyone can consume more.
Demand increase temporarily.
Market forces adjust.
Market prices are now greater than they were before.
Now $110 buys only $100 worth of commodities.

It is when more money is introduced into an economy, that prices go up dispite the market forces. Inflation is a monetary issue, which means... Gold. Just to get that straight.

i think i can afford myself a little "i told you so" chuckle. have fun with your protective bond