From what I’ve seen, the only way for inflation to go up is by deliberately setting helicopter money and quantitative easing way too high, which can trigger hyperinflation. It is also tied to wages, but the results of that seem pretty superfluous either way. I feel like there are a lot of opportunities to expand upon it and make it a more central aspect of gameplay.
-Helicopter money and quantitative easing need serious adjusting. As it stands there is literally no reason at all not to have both policies in place at at least ‘low’ because they provide valuable benefits with little or no affect on inflation. On the flip side, having them higher than ‘low’ is completely counterproductive, because it causes enormous inflation with almost no additional benefit over ‘low’. Inflation should be raised at the lower end, and lowered at the higher end of these two policies.
-Minimum wage should be directly tied with inflation. With a high minimum wage increasing inflation, and a very low (or no) minimum wage reducing it.
-Welfare policies that simply inject money into the economy, such as child benefits and UBI should raise inflation, while rent control should reduce it.
-Voucher-based policies such as food stamps, healthcare vouchers and school vouchers should lower inflation, since they directly lower the prices of consumer goods and services without creating money.
-I suggest this as a new policy. It is a ‘money printing’ policy akin to helicopter money and quantitative easing. With it, the government essentially just creates money to reduce the deficit (or raise the surplus). It would produce direct income for the government similar to taxation, but raising it will cause inflation, lower currency strength, and severely anger capitalists.
Corporate Price Gouging
-I suggest this as a new ‘red button’ situation. If your country has competition laws favoring big business and lax consumer rights, large corporations will arbitrarily jack up the prices of good and services simply to increase their own profits. This results in artificial inflation, increasing prices for consumers. This situation increases inflation, angers the poor and middle class, lowers poor and middle earnings, and increases high earnings.