Isk inflation rate

Hi all so I was wondering what EVE does to combat inflation that could be created by the sales of plex by players for more isk. I ask because in a player driven market if people keep buying plex and selling it for isk the logical way it would go is prices of items would go up as players start to bid more on rare things like the orca is an example. Of this type of price jump. I’m not an economist but I do understand the basics. If anyone knows more about this please share I’m curious to learn more.

inflation happens… were you around when Plex was almost 5 mil each?

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This doesn’t cause inflation, when PLEX is sold for ISK that’s just people transferring ISK for goods. Inflation is when the buying power of an individual unit of money (1 ISK) goes down, usually because more ISK is being pumped into the game than there are new goods being produced. A similar effect happens when things get more expensive because of increased production requirements. Scarcity for example isn’t technically inflation, although it has basically the same effect as inflation and many people say it is as a result.

The actual cause of inflation in a game like eve is ISK faucets, specifically things that produce ISK out of thin air. Bounties, mission rewards, and commodities you can sell to unlimited NPC orders (red poo, blue loot, OPEs, etc) are the main examples. All these activities serve to add raw ISK to the game.

The way this is combated is with ISK sinks. These are things that remove ISK from the game entirely. In eve this almost entirely takes the form of various taxes, mostly market taxes, as very few other things actually remove raw ISK from the game. Almost everything else is either a transfer of ISK, or destroys goods, not ISK.

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PLEX isn’t actually a great representation of inflation in eve, because it’s influenced by many other factors, and from what I’ve heard when PLEX was stupid expensive it was mostly because massive amounts of plexed bots were driving the demand for PLEX very high, but this wasn’t outweighed by people buying PLEX to sell for ISK to others.

In the last 2 years or so, PLEX has fallen back down to about 2.6M per unit, but ISK in general sure as hell isn’t worth about 80% more than it was then. ISK has actually gotten less valuable than even then for most things, because of scarcity driving the prices for most things way up.

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???
What is being inflated here?

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Gaming513 gave an excellent answer, but you might also want to also be interested these videos by extra credits.

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It’s been answered before, but let’s make it short:

Selling PLEX does not create ISK. So it causes no inflation.

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That is not even remotely close to how inflation works. You’re just talking about moving money around from one player to another, not creating more money. If someone sells PLEX someone has to get poorer by the same amount the seller got richer. There’s no change to the amount of money in the economy.

I was around when you could buy a dominix for 60 mil.

Your first mistake was believing in the overt lie that the market is ‘player-driven’.

Prices either reflect Eve Online as having the dumbest, most economically-illiterate player base or it is a lie.

I remember the great Omega crisis of 2019? Omega was about 2.7bil for 500 plex… Dark time that was.