Economic & Currency Solutions (was RE: [Mud-Dev] Broken currencies)

[Matt Mihaly]

On Wed, 4 Apr 2001, Derek Licciardi wrote:

> This idea could work in a mud as long as you provide for growth.  In a
> situation where the amount was fixed, every new player entering the
> game would cause every other player's slice of the pie to potentially
> be that much smaller.  In today's world banks create money through
> transactions and the reserve interest rate.  While, I can't explain
> the exact reasons why $100 becomes $200 over time just by being
> transacted through a banking system, I am sure that it can be found in
> any management finance book at the college level.  I remember it from
> my junior year in business school.

Once again I believe the essential problem with this is a lack of avenues
for investing money. If there is a reason to invest and ways to do it,
then you don't have a big problem with hoarding (the amount of money stuck
in mattresses in the US is trivial, for instance. I believe it might even
be illegal to willingly keep over X amount of money out of
circulation). It's the inability to establish credit (due to the fact that
you can take out a loan, give the money away, and quit, with no
consequences whatsoever) that seems to me to be one of the fundamental
problems with trying to simulate a real economy in a MUD.

--matt

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