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Neopia's Fill in the Blank News Source | 24th day of Running, Yr 21
The Neopian Times Week 21 > Articles > Stop Inflation!

Stop Inflation!

by rainbow_star_baby

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!

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