Inflation Tax - Debt Devaluation Proof of Concept

why this was made: refer this steam discussion

This proof-of-concept mod adds a situation that generates some money proportional to inflation and the amount of debt. It reflects de-valuation of debt by inflation. Ratio of annual debt reduction is expected to be around 1.5~3.5% (vary by countries) at 20~30% inflation sim. Its income will, obviously, start to decline as you repay the debt. You are quite likely to see situations where Debt Devaluation exceeds Debt Interest (as annual debt interest rate is 1.70% at AAA rating), meaning that not paying your debt back can actually grant more financial resources.


  • As modders can’t directly access the amount of debt, the mod estimates debt/minGDP ratio from debt/GDP ratio. That means some errors can’t be removed. (wealth_mod diff most notably)
  • Also, in doing so, the mod assumes that the maxGDP is triple of the minGDP. If this doesn’t hold true (e.g. some modded countries), it won’t work as intended.
  • If debt/GDP ratio is above 200%, you won’t be able to get more devaluation from more debts because of technical limitations.
  • Therefore, while UK, Japan(provided their debt/GDP ratio is below 200%), Germany, Canada, and South Korea will get more favorable rate of devaluation, US, Australia, Spain, and Italy will take more time (or inflation) to get their debt devalued.

This might make the game too easy to play but might be okay if well balanced I guess.