New macro economic indicators

[ariesas]

All you need to add is Central bank interest rates and inflation ( CPI is and index of it). Interest rates could vary randomly from 0,25 to 20 percent.

[sehaghy]

How does domestic economy and international trade affect strength of the economy? Working on a final. I need to assess the economy in quest to purchase a home. How does domestic economy and international trade factor in?
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[Keither]

Please add population growth indicators too. Realistically economic boom increases population growth.

[David]

Please check out this thread for the enhanced simulation on population growth:
viewtopic.php?f=7&t=142

[Bigcat]

Dear David, I suggest to add a concept call "Educational Rating" of city.

David said: "Enhancements to the stock market in the new version:

Stock Market and Property Market Bubbles
Bubbles in the stock market and property market may develop if the central bank maintains a loose monetary policy with ample money supply and a low interest rate.

In addition, stock prices rise and fall in tandem with different market sentiments and marco economic situations, in addition to financial performances of the underlying companies.

High GDP growth and a low unemployment rate will reinforce optimism and investors’ risk appetite will increase, leading to price rallies in the stock and property market, whch will in turn fuel inflation.

When the inflation spikes to a dangerous level, the government will have no choice but to suppress it by hiking the interest rate and decreasing the money supply. The asset price bubbles may go bust and put an end to the current boom-and-bust cycle.

The boom-and-bust cycle will reinitiate again years later, after the inflation has been subdued and maintained at a low level for an extended period of time, allowing economic activities to pick up momentum again."

I have some ideals / informations about 'macro economic'.

1) First of all, GDP = Wages + Rents + Interests + Profits + Taxes, so that GDP growth is mainly contributed by trading profits.

2) Real wage rate is based on City educational level and company profits, but Inflation rate is used to reduce unemployment rate.

David said: "In designing the marco-economic simulation component, we have factored in hyperinflation as a possible scenario. Under hyper-inflation, products can be several times more expensive in a very short period of time. For instance, with an inflation rate of 20%, a product will be 3800% more expensive in just 20 years.

Since we decided not to implement currency exchange rates, if there is a city with hyper-inflation of 20% and another city with normal inflation of 5%, there is a huge price gap that easily make the gameplay off-balance. A player can buy goods from the city with normal inflation - say $2 for a bottle milk and sell it in the city with hyperinflation - $2 x 38 = $76 for the same bottle, a profit of 38 times!".

Educational Rating
I suggest to add City educational level in game, it can help you to solve the above problem. It is because the salary of same edcational level should be equal in different countries, or else the higher salary one will lose the job. The unemployment rate will rise due to the wage rate unchanged (no worker willing to reduce the salary), and the government will be no choice but to supply more money than GDP Growth to reducing the unemployment rate. The net result is inflation but wage rate without growth proportioned. Until new equilibium point arrived, the ratio between price of bottle milk and wage rate is same level in different countries. If it is used same currency for calculation as the US Dollar doing, the new equilibium point will be same price of bottle milk in different cities with same city educational level.

Therefore, you can set the CPI of different cities be the same ratio when the edcational rating are the same. And let the edcational rating unevenly grow up on cities during the game time.

Change currency exchange rates is just another method to do so.

In game, it can set educational level from 0 to 100, and the growth rate of it will slow down when it is in higher level. For example, the gowth rate of wage rate of graduated from University higher than the primary school, but the gowth rate of educational level of graduated from University slower than the primary school,

3) Rents and Taxes is based on wages and company profits, so that Rents can also call indirect taxes in cities with high land price policy.

4) CPI is based on real wage rate and inflation. CPI is a ruler to measure the cost of same quality of life, that how much to get same weight of food and to rent a same size house to live, etc.

The most important thing is the ratio of CPI and wage rate in all countries will be the same in optmium point. If same salary can buy more goods (price of good sold is reducing), it will import more but export fewer, then GDP will drop.

5) Interest Rate is based on the equilibium point of money supply and demand.

6) Inflation Rate is based on "Money supply excess GDP growth". "2% of Inflation Rate is optimum point in USA", Milton Friedman said.

For hyperinflation, the main reason for this is to pay for government bond or pay for war. To cope with hyperinflation, the only one way is to reduce money supply (stop to print new money). To do this , it also need to reduce the demand of money, arise the interest rate become the powerful method to do this mission. However, most companies lacked for money will cause company bankrupt and unemployment rate increasing. Finally, GDP will drop again.

[jacobwhite08]

Interesting ideas. Poverty is one of the major concerns of the world’s population and nations worldwide. Surely, if unemployment is rising, it is a sign that the economy is in bad shape. However, on the Bizzaro Planet, good is bad and bad is good. It is the home of Bizzaro Superman and other unusual versions of the DC universe characters. Economic experts on the cube-shaped planet, also called Htrae (backwards Earth), have some really odd ways of forecasting the health of the economic climate. And some of them are even advocated here on Earth by so-called "experts."

[counting]

I wonder when human's corporate empire reach to a point that actually employed say 3% of the total population in all cities. What would happen to the unemployment rate? What education level of our employees actually are? Factories employees should be different with R&D, retail different with farms, etc. Can the approximation extrapolate from macro-economic indexes actually met with "real" economic activities of players?

[WilliamMGary]

Did I hear the word add-on?