online games, multiplayer games
Simcountry is an Online Digital World where you are the President of a country.
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Currencies, Financial Services and Banks (Fearless Blue)

Simcountry: Simcountry Bulletin Board  Currencies, Financial Services and Banks (Fearless Blue)

CorSec Authority (Fearless Blue)

Tuesday, March 22, 2005 - 03:30 am Click here to edit this post
i'm making this post to explore the idea of starting a poll to allow players to create their own independent currency systems and use banking corps to control and administrate their assets.

first, i'd suggest the creation of a financial services corp. the FS corps would handle the transactions for the private investment funds (they do this in RL, employing large amounts of workers and generating huge tax income for governments). they would behave slightly differently from normal corps, but would create a product which the private finances in your country would require (the 3 boxes at the bottom of your FI page, previously totally irrelevant). this could then create supply and demand on the international market (and possibly create the only desirable corps to use on the CM to make a profit).

they would then collect a dividend from the private investments, allowing presidents to see financial returns from the stock market. i would also suggest that presidents be allowed to either choose manually or set to 'automated' what investments the FS corps choose, just as CEOs can do with their enterprises. as in the real world, richer countries have increasing financial services demand.

also, in the real world, trade is usually done in contracts over periods of time. buying your supplies from many different sources is far more expensive and inefficient than buying from a handful of sources. surely it'd be better if the international market was restructured so that the emphasis was on short to medium-term contracts, with smaller direct sales only done to cover for decreases in producion levels of suppliers. if 12 month contracts were offered, naturally this would cut the processing neccessary for market transactions by up to 1/12. i can't imagine why W3C didn't design the market this way- it would save a lot of proccessing time.

i'm also wondering if it would be a viable option for human presidents to be given the option of creating their own currency systems, which would be pegged to the GDP per capita values in the country. private investments could speculate on the value of currency by buying or selling government bonds issued by presidents, increasing or decreasing the value of currency by the scale of demand for investment. humans could then see large incomes from issuing bonds (to be payed back after a specified time, with a specified interest rate) to investors and keeping their currency values high and stable. it would also be an excellent way for new presidents to pay off starting debts, since in most cases their currency values would be garuanteed to rise, which would spur on cash speculation, giving the president more cash, into an upward spiral that would plateua off when the president reaches near-max GDP/capita values.

the problems lie with the cash market- pop transactions and insider trading by humans would create unbalanced behaviours. it would be neccessary to ban presidents from speculating on currency, and possibly CEOs. cash market transactions would leave large holes for exploits in the system, and i'm not sure how it could be resolved.

this would lead on to the creation of central banks, which would set interest rates for currencies. i know that inflation comes into account here, and i wonder, can it be accurately modelled? i don't know the answer to that. banks however could handle the cash accounts for their host country, and be automated to supply loans to corps in the same country.

i'm making these suggestions because the only reason i and many others play this game is for the barbarities of war- but it needn't be so. the economic system is so ridiculously futile and unengaging that there needs to be some drastic overhauls to make it dramatic and competitive. in the real world, national-economic competition is just as interesting than military competition. there needs to be a much stronger link in this game between economic and military behaviour- and more possibility for players to get ahead by skill and strategy, not by following a standard formula of building only certain groups of corps.

also, forgive my less-than-perfect grasp of economics. i'm sure that others can improve on my suggestions.

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