I just bought Democracy 2 and have been messing about with it after work. Good fun!
About me: I’ve been an editorial intern with OpenDemocracy for the last few months but I’m just (next week) about to move from the UK to Italy to start a Masters in European Studies and International Relations at the University of Trento (assuming I pass the entrance exam next Friday). So I’m interested in politics, economics and international law.
I’m also intrigued by the concept of “serious games” and “games for change” - especially as educational or training tools - to learn about real life things. Current favourite is A Force More Powerful, but I’m looking forward to trying Peacemaker as well. And of course, Republic: The Revolution was great fun
Anyway - I’ve been using Democracy 2 as a bit of an “educational tool” to prepare me for Trento (at least, that’s the excuse I’ve been giving my wife). I’ve been playing around with modding the game too. I’m trying to work monetary policy into Democracy 2 (in a very abstract way) by including “interest rates” and “inflation.” (I realise there’s already an “inflation” mod - but this would eventually be more like a “monetary policy” mod).
Here’s the idea:
“Interest Rates” work as a policy which is available from the start and is uncancellable (I’ve toyed with the idea of making it a cancellable policy to simulate “handing over control of interest rates to the central bank.”) Interest rates effect GDP and “Inflation.” Raising interest rates slows down the economy (GDP) and reduces inflation, and lowering interest rates stimulates the economy but increases inflation. I realise this will lead to a bit of a “Philips curve” in terms of things like unemployment - but I hope when the mod develops the relationship between inflation, interest rates and GDP can become more nuanced.
“Inflation” is a simulation object - it upsets capitalists and decreases average income (to simulate the demand for higher wages caused by the increased price of consumer goods).
A question: what does average income actually affect? It doesn’t seem to have any effects at all. So - I was thinking of replacing “inflation” with a “Consumer Price Index” (CPI) - something which would directly influence how well the government is liked by different groups.
I’ve also thought about replacing “interest rates” with “discount rate” - but I don’t want to make it too jargon-heavy.
Yes, there is already an inflation mod which does a lot of this. However - this would be a “monetary policy mod” - and possible future places to take this include adding a money supply, open market operations, reserve ratios, stagflation, “hyperinflation” as a situation and the ability to actually print money. But let’s see if I can get “interest rates” and “inflation” working first of all.