i have a super island

Chapter 815 Deflation
During dinner, Fang Fang naturally talked to Li Qingman about the day's affairs.

When it was mentioned that Blake had captured the miners from Pisces Island to Wanguo City, both Fang Fang and Li Qingman showed helpless expressions.

Song Zhixi didn't quite understand, and asked, "Why is this? Why is the lime mine on Pisces Island suddenly so expensive?"

Fang Fang rubbed the corner of his mouth and said, "According to my prediction, what should happen in the City of Nations is deflation."

"This...I'm not very good at financial knowledge." Song Zhixi sighed and looked at the equation helplessly.

"Actually, it means that there is less money circulating in the market." Li Qingman explained to Song Zhixi on behalf of the equation.

Song Ji-hee asked, "How can there be less currency in circulation?"

Li Qingman said: "It's very simple. At present, the currency we issue is fixed, but more and more natives come to our city of nations to do business, which leads to fewer and fewer copper coins in each person's hands. Everyone has copper coins in their hands, but they don’t necessarily spend them. If they can’t spend copper coins, they won’t circulate in the market. Such a situation is deflation, that is, there is less money circulating in the market.”

After Li Qingman's patient explanation, Song Zhixi seemed to understand a little bit, and suddenly said: "I understand that rare things are more expensive. There are fewer and fewer copper coins circulating in the market, which means that copper coins are getting more and more expensive."

Fang Fang joked: "Well, it seems that you also have a very good financial talent."

Song Zhixi blushed, rolled his eyes at Fang Fang, and said with a sneer: "Don't make fun of me, I am confident that no one is better than me when it comes to surgery, but when it comes to financial matters, compared with you Just a layman."

"Zhixi, if copper coins are getting more and more expensive, what about objects?" Li Qingman asked.

"Price..." Song Zhixi thought for a while, "Of course the price is getting cheaper and cheaper, because the copper coins become more valuable, so the copper coins needed to buy the same thing will become less."

Fang Fang clapped his hands and boasted: "By the way, smart."

Song Zhixi suddenly thought of something again, and hurriedly said: "No, if it's deflation, then why would the price of the lime mine on Pisces Island increase? Shouldn't it be cheaper at this time?"

Fang Fang clapped his hands again, and continued to boast: "Look, let's say you are talented, and you know how to ask questions yourself."

"Don't laugh at me." Song Zhixi was embarrassed, and went to Li Qingman for help, "Qingman, I don't understand very well, you should tell me."

"Pearl has already gone to investigate the prices of other islands. Before the price situation comes out, there is no way to draw a conclusion." Li Qingman also shook his head. It's not that she doesn't explain like Song Zhixi, it's just that many things are based on no data. There is no way to jump to conclusions.

On the second day, Pearl was investigating the recent transaction of materials shipped from other islands to Wanguo City.

In fact, each of these transactions has been recorded. Li Qingman had previously requested that the official trade between each island and the City of Nations be recorded truthfully: what island was bought from, how much was bought, and at what price. All have the signatures and fingerprints of the handling personnel, and each stroke is clear for future reference.

On the other hand, Fang Fang and Li Qingman personally came to the free trade market on the east side of the island to investigate whether it was a real deflation problem.

After arriving in the trading market, I have the most intuitive feeling that there are fewer people in the market than when it was the busiest time before. It is not too obvious, but it can be felt.

And there seems to be less anger in the market, buyers and sellers are no longer as passionate as before, and some people's faces are full of frustration.

Fang Fang and Li Qingman wandered around a few street stalls casually, and bought some fruits, corals, stones, feathers from those vendors at random...

As for the price, it is indeed cheaper than before, which is obvious.

When the street vendor took the copper coins, he kept bowing to Fang Fang and Li Qingman, looking very happy.

"It does look deflationary," Equation said.

Li Qingman said: "Let's go back first, and see how Pearl's inspection is going."

Equation nodded, and returned to the city with the things he just bought from the market.

When she found Pearl, she happened to be breastfeeding Xiao Zhiming, and the two waited for Pearl to finish feeding before going in.

"Where is Xiao Zhiming?" Li Qingman saw that the child was not in Pearl's arms.

"He fell asleep and I put him in the inner room."

Speaking of children, Pearl shook her head helplessly, this little guy is really too much trouble sometimes.

The three of them sat down to discuss the business, and soon Pearl revealed the results of her search. It started about half a month ago, and the surrounding islands sold wood, charcoal, obsidian, tin ore, etc. There is a continued decline.

However, among so many materials, only the price of the lime mine on Pisces Island has been rising, and it has risen from ten copper coins per boat to fifteen copper coins per boat.

Pearl also recently heard some economic common sense from Fang Yuan and Li Qingman, and she couldn't help asking in doubt: "The situation on Pisces Island is indeed strange. Everyone's prices have dropped, but only it has been rising."

According to the law of deflation, the price of items should fall, but it has been rising all the way, which makes Pearl unable to understand this situation.

Li Qingman said: "Economic laws should be viewed from the perspective of the general environment. There are small environments in the large environment. There is me in you and you in me. It cannot be completely separated. At present, the overall situation of Wanguocheng There is no doubt that the situation is deflation, but it is not necessarily the case for each island, because the situation of each island is different."

Pearl understood these words, nodded and said: "Madam, this is the specific analysis of the specific issues you mentioned."

Li Qingman said: "It is indeed the case. In addition, inflation and deflation are only a major factor in determining prices. Another more important factor is the relationship between supply and demand, which is the most direct factor in determining prices."

"Supply and demand?" Pearl asked.

"Take the price of lime mines as an example. The people in Pisces Island said that the output has not changed. The amount of mines that were dug every day before is now the same every day." Li Qingman deduced, "That's very simple, it must be people who need lime mines There have been many changes, except for our Wan Guo City, the miners of Pisces Island must have sold the lime mines to other people."

"They guys, how could they do such a thing!" Pearl was very angry, expressing her indignation at this behavior.

"Pearl, don't be angry about this. These are normal market behaviors." Li Qingman explained, "They are not our colonies, so they don't need to just provide us with resources. If selling someone else can make them profit, that's a big deal." There’s nothing wrong with that.”

Pearl apologized to Li Qingman for her recklessness, and praised: "Madam, you are really kind."

Li Qingman said: "The matter now is very simple. It is to go to Pisces Island and thoroughly investigate this matter."

(End of this chapter)