When I read the article entitled "Deflation"
in week 19 of The Neopian Times, I was shocked and horrified. Are Neopians panicking
about deflation? I hope not. Deflation is exactly what Neopia needs right now,
and I hope that nobody will go out and artificially inflate prices with the
misconception that deflation is bad.
With games like Grundo's Gym and Kiko Match II reducing the amount that they
pay, Neopians are not earning as much as they used to. This means that they
do not have as much money to spend on goods (items) for their NeoPets. This
deflation of prices is definitely a good thing for people whose incomes have
been reduced.
The Codestone example is not of inflation, but an example of competition.
Before the Dubloon, the Codestone was highly regarded and highly priced. With
the introduction of the Dubloon, Codestone prices began to fall. This was because
Dubloons were easier to get than Codestones, and so they were cheaper. Codestones
were not being bought at their high prices, so their price was reduced. The
Codestone price will most likely keep dropping, so if you want to sell your
Codestones, do it now. Therefore, the Codestone example used in attack of deflation
is irrelevant.
Artificially inflating the prices of goods in Neopia by buying out all the
stock under the price that you are selling that item in your shop does not help
one bit. Usually prices of goods rise and fall due to demand (or how much of
the good is wanted). If hardly anybody wants the good (e.g. bottles of sand
and Tombola items) then the price will be low. If lots of people want the good
(e.g. Faerie Paint Brush) the price will be high. So using the 'buy out everything
under your price' method not only means that you will have to pay more for the
good in the future, but it means that the economic market will be thrown out
of balance.
In the real world deflation (usually called a recession) is considerably worse
than the Neopian version. There are workers to pay, materials to buy etc. In
Neopia there is none of that, so deflation does not have the same effect. Shopkeepers
may lose a small amount of Neopoints, but poor Neopians and shopkeepers alike
will save money on the daily goods of Neopian life like food and grooming items.
This saving is infinitely bigger than the small loss encountered by the shopkeepers,
and means a good lifestyle for all.
So let us join together not to stop deflation, but to stop the rising of prices.
Let us stop INFLATION! | 
