2011-07-10

Virtual economies

When facing a rough problem it is common to study similar environments, looking for potential solutions. Virtual worlds, being all the rage, should have been the first place academics turned to, looking for advice, but they didn't, so I have the honour to publish my findings first. What can we learn from videogame worlds that would help us get out of this supposed crisis? After carefull study I've found that, apart from "beating the bad guys with the biggest sword you can find", there's nothing for us in here.

Really, videogame worlds have it much worse than us. Capitalism's main flaw is in its reliance and dependence on inflation to prosper, but worlds like Hyrule, Hillys or Final Fantasy Land are burdened with the much, much worse phantom of hyperinflation, and each tries to decrease its effect the best they can.

Origins of the inflation

One common issue in RPG worlds is the recurrent monster invasion, which brings chaos and suffering. It happened in each of the Phantasy Star games, in Hyrule, the Mana world... everywhere. But its direct effects are not that bad. I can't remember many towns destroyed by the monsters in any of those games, but what I remember is that all monsters, from cacti to dragons, drop legal tender, be it Gil, Rupees or Meseta, in generous quantities.
The direct impact of this simple fact is staggering: in whole worlds, when travelling from empire to empire, or even between planets of the Algo System, you'll use the same currency everywhere. Monsters provide the common ground for a planetary economic system that the UN can only dream of, with almost free manufacturing costs and little rewards for forgers.
The catch is that there is always new currency being coined, at an uncontroleed rate. If you want to eat roast vegetables, you just need to go out, kill a Giant Onion or Carrot, pick the loot and use it to buy the roasted version of whatever you killed. And the same happens every morning, in every house, in every town. And the amount of coins in circulation increases constantly, maybe not too fast, but in a year you might find that it takes killing two Giant Onions to buy one roast onion. And in a hundred years, when the next monster invasion starts, the value of the currency will drop so fast that it won't be even funny.

So how do you control inflation in a chaotic system like this?