Main Page Go to Short Stories Go back to Articles Go to Comics Go to Continued Series Go to Editorial Go to New Series

Show All | Week 1 | Week 2 | Week 3 | Week 4 | Week 5 | Week 6 | Week 7 | Week 8 | Week 9 | Week 10 | Week 11 | Week 12 | Week 13 | Week 14 | Week 15 | Week 16 | Week 17 | Week 18 | Week 19 | Week 20 | Week 21 | Week 22 | Week 23 | Week 24 | Week 25 | Week 26 | Week 27 | Week 28 | Week 29 | Week 30 | Week 31 | Week 32 | Week 33 | Week 34 | Week 35 | Week 36 | Week 37 | Week 38 | Week 39 | Week 40 | Week 41 | Week 42 | Week 43 | Week 44 | Week 45 | Week 46 | Week 47 | Week 48 | Week 49 | Week 50 | Week 51 | Week 52 | Week 53 | Week 54 | Week 55 | Week 56 | Week 57 | Week 58 | Week 59 | Week 60 | Week 61 | Week 62 | Week 63 | Week 64 | Week 65 | Week 66 | Week 67 | Week 68 | Week 69 | Week 70 | Week 71 | Week 72 | Week 73 | Week 74 | Week 75 | Week 76 | Week 77 | Week 78 | Week 79 | Week 80 | Week 81 | Week 82 | Week 83 | Week 84 | Week 85 | Week 86 | Week 87 | Week 88 | Week 89 | Week 90 | Week 91 | Week 92 | Week 93 | Week 94 | Week 95 | Week 96 | Week 97 | Week 98 | Week 99 | Week 100 | Week 101 | Week 102 | Week 103 | Week 104 | Week 105 | Week 106 | Week 107 | Week 108 | Week 109 | Week 110 | Week 111 | Week 112 | Week 113 | Week 114 | Week 115 | Week 116 | Week 117 | Week 118 | Week 119 | Week 120 | Week 121 | Week 122 | Week 123 | Week 124 | Week 125 | Week 126 | Week 127 | Week 128 | Week 129 | Week 130 | Week 131 | Week 132 | Week 133 | Week 134 | Week 135 | Week 136 | Week 137 | Week 138 | Week 139 | Week 140 | Week 141 | Week 142 | Week 143 | Week 144 | Week 145 | Week 146 | Week 147 | Week 148 | Week 149

Neopia's Fill in the Blank News Source | 28th day of Running, Yr 26
The Neopian Times Week 29 > Articles > Neonomics: What All This Means To You

Neonomics: What All This Means To You

by saphirra

Recession, depression, inflation, deflation, panic! If you're anything like me, an avid Neopian Times reader and shopgoer, chances are you've heard at least one, if not all of these terms. In just a few short paragraphs, you are going to learn how the Neopian economy affects YOU.

First, let's go over the terms, and keep the definitions simple.

Recession - A general 'slowing down' of the economy. Means: People buy less from shops, fewer Neopoints go around, causing prices to go (mostly) down, people that have invested in items or stocks lose money.

Usually: Not good, but not too bad if temporary.

Depression - A severe and/or long-lasting recession, often resulting in decreased business activity, falling prices, and unemployment. (The last doesn't really apply, as long as the faeries keep the employment agency open. ;) )

Means: People buy much less from shops, fewer Neopoints go around, prices go down a lot, people that have invested in items or stocks lose money, badly.

Usually: Really bad. Fortunately, this rarely happens.

Inflation - An increase in the price of items, indicating a decrease in the purchasing power of money/Neopoints This is usually due to items becoming more scarce, or Neopoints becoming overabundant.

Means: Prices go up, things cost more, people that have 'liquidated their assets' (Sold stuff for Neopoints, now you can impress all your friends) lose money.

Usually: A small rate of inflation, over time, is good. High rates of inflation are bad, leading to runaway prices.

Deflation - A decrease in the price of items, due to money/Neopoints becoming more scarce or items becoming more abundant.

Means: Prices go down, things cost less, people that invested in items lose money.

Usually: Bad.

Panic - What you do when your mom catches you writing articles like this one at 3 A.M.!! (Just kidding.) A reaction of people to any of the above, that causes harm. For example, if one of your stocks drops two points, and you go sell off your entire portfolio, that would be a panic reaction.

Means: Lots of people do something in reaction to a change, making the condition worse.

Usually: Bad. Really, really bad. This can wreck economies, and turn a slight recession into a depression.

Congratulations, you made it through the terms! Wait! Don't leave, yet! Just listen to a quick, easy plan for keeping yourself out of a pickle should any of the above happen.

First, find a way to make Neopoints It doesn't have to be a lot, just a game that you like, or maybe your shop. There are dozens of articles on how to make Neopoints, so go read those.

Second, save a set part of what you make. I'm highly conservative, and save 60% of what I make per day. Don't go out and throw ALL of your Neopoints into buying one paint brush, or a Wand of the Air Faerie. Nearly all of the time, it will still be there when you can afford it easily. If you want to save as little as 10% of your earnings per day, that's your decision, but it will take much longer to get a large stack of Neopoints or a pile of good items.

Third, don't put all of your Neopoints into any one investment. Quite a few people have to learn this the hard way. Don't invest nine-tenths of your savings into stocks, because the stocks could crash, or (even worse) go bankrupt, and you could lose a lot. Don't put all of your NP into items, either. You never know when the staff will open up another game or attraction. Dubloons and Codestones are a great example, as people who had invested in Codestones got their easy chair ripped out from under them when Dubloons were introduced.

Fourth, have fun! You can't take all of this too seriously, or you'll wind up as wrinkled and haggard as Edna!

Note: The author was turned into a Puppyblew for 18 hours for making that last comment.

Disclaimer: If you DO end up as wrinkled and haggard as Edna, it's your own fault for worrying too much.

*ZZZAP!*

Oh, great. This time, I'm a Moltenore.

*stampeding sounds*

AIEE! COLLECTORS!! SAVE ME!!!

Week 29 Related Links

Fuzzy Math on NeoPets
NeoPets is notorious for their special type of "Fuzzy Math."

by thecapedcaper



Search :
Other Stories

Neopia in All Its Glory
Well, this article isn't really about anything in particular, just another opinion.

by webman88


Anatomy of a Shoyru
Finally, an article about Neopia's favourite flying dragon.

by teresatheperfect


Honk Honk! Interview With the Chia Clown
Honk Honk!

by raflonile


Colourtrology
So without further adieu here is your NeoPet guide to colours.

by roseemaryzokpidgeon


How to Empty Out your Inventory
Do you have over fifty items? Can you not bear to part with that Tiki Tack Keyring?

by horseaddiction


Neopets | Main | Articles | Editorial
Short Stories | Comics | New Series | Continued Series | Search