Not we are but a few.
And then what happens?
If the price is non-zero, yes.
Sheeesh…
How I read it with my limited economic knowledge.
The velocity of money can go down if there is a lot of money in economy or the economy is saving.
If prices go up and velocity is going down we have an inflation:
“In economics, inflation is a general rise in price level relative to available goods resulting in a substantial and continuing drop in purchasing power in an economy over a period of time.”
In both economic crisis (2008-2009) and now covid 2020 the economy was saving thus velocity going down too.
That equation is just made up. Velocity of money is something the economists created so that they could balance their phony math.
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Maybe so, but I’ll miss Guristas ratting in Cal HS, even so.
What does velocity have to do with scarcity of a given good?
Yes, if the money supply increases then the velocity of ISK, all other things constant, would decrease. However, we also see that produced is also decreasing and that there appears to be a pretty good correlation between produced and velocity. That is, it is a change in the numerator that is driving the velocity more than the denominator.
Very good, but in looking at the measures of inflation what do we see? Little to no inflation.
Indeed, an exogenous shock (COVID) and a financial crisis both appear to have lead to an increased desire for liquidity. However, there is no COVID in EVE and there doesn’t appear to be a financial crisis (the financial sector in EVE is trivial) so…again it looks like the change in velocity is due to the real side of the economy.
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You mean David Hume?
Hm.
I believe we still are too wealthy, but times are changing.
Maybe the “we” part is the problem in my statement, because it doesn’t really define who.
You make me look deeper into these things and I really appreciate that. : D
The graph shows that the velocity of ISK is going down.
I’ve cut, stretched and superimposed the money supply graph onto the velocity graph …
… to match the different time frames. It’s accurate enough, as can be seen at the bottom.
Whatever ratio that is … I’m not quite seeing it.
I see that at “Lifeblood” there’s a dip on both graphs happening.
I can’t make much sense of it, except that “Lifeblood” clearly had an impact …
… and Chapter 2 also. Doesn’t seem to correlate to money supply much.
What we have now, in EVE, is a decreasing supply of money …
… and a reduction in the amount of goods …
… combined with a lowered velocity of isk due to discouraging market changes.
We have little to no inflation, because the money supply is decreasing …
… combined with the supply of goods decreasing, aka …
… there’s less money and less goods, but demand stays roughly the same?
Sheesh! It’s much easier to just think “prices go up means inflation”, you know? 
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Is it possible to get an extracted data table that breaks total trade and production value out by “period” “indexName” “subIndex” “totalValue”?
I’m looking to perhaps discover how regions perform compared to each other on a index and subindex category level.
Also I just love data haha!
Thanks!
-Ace
Solid move, bringing Fred to the party!
Yes, and so is produced, which can be thought of as something akin to GDP. So what does that mean?
Which also tends to track is deflation, not inflation. And if prices are decreasing or people think they will decrease in the near future they may sit on their ISK waiting for prices to drop.
We maybe wealthy…but we aren’t spending that wealth. Why? Because getting more ISK is hard? I don’t think so. For some reason people are sitting on their ISK…could it be the war in the south west? Are players hanging on to ISK to be able to replace ships? IDK…maybe. Is it that the overall CPI has been decreasing and players are hoping to see even lower prices/holding ISK now has a positive rate of return? Both? Something else? I don’t think it is wealth - i.e. too much ISK in one’s wallet. Maybe too much wealth in that players have a plethora of ships and fittings and just don’t feel a need to buy…
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It would be helpful if we had some idea of what people were buying before. I can imagine that the demand for upwell structures, rorquals, and titans have all dropped considerably in the last year.
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