Central Bank Segment

Great Game!

My suggestion is this when it comes to currency manipulation. We need the ability to appoint a Central Bank head. So this means a new minister and a new segment on the policy board. Right between Economy and Taxes should sit Central Bank. You have a decent amount of policies already that are strictly imposed by a central bank. No head of state deals with this stuff beyond recommending someone to run the show. However, if we are going to dabble in this, we may as well go full blown.

Hear are some policy ideas that could work. I am borrowing from both Keynesian theory and Austrian Theory. Personally, I’m an Austrian, though I have studied the five major schools of economic thought.

Quantitative tightening
Adjust Interest rates on lending (a slider that goes +/- 100%)
Gold Holdings (the more you have, the more it impacts other policies and their effectiveness)
Gold Backed currency (A slider that goes from Fiat, Fractional reserve, full gold standard)
Debt backed currency (this would make it impossible to eliminate debt, but this is what the USA uses)

Possible situations
(World Reserve Currency)

Also, Hyper Inflation should come with a count down timer. If you run inflation high for too long, you destroy the currency. This should result in a loss in the game, very similar to assassination.

Another option is to simply eliminate the policies relating to central banking and instead simply appoint a Banking method. So Every election year comes with a new opportunity to change your macro central banking strategy.

An example, you pick the Austrian theory. Leading to a gold back currency where debt is expensive but savings ultimately pay for everything. Stability is king but GDP will not flourish so quickly. The central bank is more of a national clearing house that holds the nation’s gold.

Keynesian theory, where a central bank is born. GDP can grow quickly, inflation may jaunt here and there. Currency is either fractional or pure fiat.

Socialist Theory, the Central bank IS the main bank to do business with. Money is Fiat, Socialist policies such as financing for government controlled industry becomes highly profitable. You are given a free loan from the bank every quarter. The debt is held by the central bank and could be discharged. This may destroy stability from businesses.

These are just ideas. However, if we are going to dabble in central banking, I feel their is more room to explore the topic. I highly encourage you to look into the options. If central banking is something you may not want to consider implementing, then maybe you should remove the policies that touch on the topic. It seems very unfinished that way.

Again I love the game!


Does anyone want to construct a banking system with me? :confused::confused::confused: crickets

tbh this just sounds way over the top in terms of details. I know way too little about these things to judge what even the difference would be, all these suggested policies(?) would actually make in terms of the current game.

Like, you threw a lot of keywords out there but it’s unclear how these things would be represented in actual game mechanics as the game stands. And what the benefit would be.

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Full agree. The detail is way more than other comparable areas get.

Helicopter money and QE both reflect mainstream policy modelling, and they’re reactive, so they differ in kind to OP’s suggestion of routine changes to the central bank’s raison d’tere and everyday operations.

Not to dunk on OP or anything (my second fav professor at uni was an austrian), but it’s worth considering that heterodox views of monetary policy (“monetary policy” in the technical sense) are… well, probably wrong. As in, the effects of those policies would probably just be worse for all concerned than the current regime. And let’s not even talk about how a certain segment of Post-Keynesians cashed in their academic integrity for political reasons. I doubt cliffski would be able to both balance these suggestions in good faith, and make them playable.

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This is the ugly truth of economics amd high finance. The words sound complex or gimmicky as to persuade you to not review the easy to understand concepts. Here is an example.

That is when i, the bank, take your bank account, and use it as collateral for a loan for another bank. I then use this money to gamble on the stock market. Most likely I will win that gamble and take my profits.

Having central banking involved would quickly teach you the shinanigans that goes on in our system.

I feel like you’re going to be one of my favorite people to chat with about this topic. The economics at the dinner table do not change when you scale them up to many dinner tables. I ask you to channel your professor at this time. :wink: With that, I understand what you mean about the political cash in. Honestly, in central banking it is unavoidable. Oh sure, in THEORY it should be unbiased for the good of the markets, but it’s made up of people. That’s how I know it wont pan out like that. Hence like all good Austrians, central banking is an abomination to mine eyes. With my obligatory rhetoric out of the way…


You however are right. It would be difficult to implement. For one thing to consider, It would be hard to get your policy “wrong” in a manner of speaking. As one can create a socialist utopia in this game and come out on top with a positive budget. That is how you know this is truly a game. With that said, it could be a tool to mold the economy to how one would see fit. Do you prioritize GDP or the people’s opinion? Farmer’s might appreciate a weak currency, but the self employed will scoff you for it. Back it by gold and the capitalists go bananas. The socialists will call it the last days. If it’s pure FIAT, the opposite. Let’s say I need a bunch of capital upfront right now. I sell a bunch of bonds for foreign investors. I piss them off, Well, here they come back.

I see this as an opportunity to turn this into a type of wild card moment. Where you could really dig yourself a hole or come up all aces. I also feel like this is one area where you could encourage conservatism within your nation. Higher money creation, higher cost of living. That changes family dynamics. Mom has to go to work now to help cover the mortgage due to inflationary effects of lowering the buying power, yet stimulating prices.

A gold standard? Saver’s with big and mom can stay home. Just an example of how it could operate in the game.

As said. It’s completely unclear what something like this would change in terms of gameplay. It sounds like you really would might wanna make a massive overhaul mod of sorts. 'Cause I doubt any of these things would be plausible to include in the game as it stands

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“Economists hate him! Balance your budget with this one weird trick.” Yeah, that’s always going to be a scam.