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HIGH FINANCE
Just as no plan survives contact with the enemy, so too does no design survive contact with reality. These are concepts, and the numbers show relative values, not absolute values. Playtesting could throw this baby right out with the bathwater. But, for what it's worth, here's what we're thinking about...
High Finance & Interest Rates in MOO3
Interest rates are variable in Master of Orion III, both for interest earned on a civilization’s surpluses and spent on its debts.
Each treasury (planetary and the Imperial Privy Purse) in a civilization can have its own debt or surplus. "The full faith and credit" of that civilization secures its debt; such institutional debt is not collateralized!
The maximum debt that can be incurred is determined at the civilization-level. If its currency is fixed the Debt Limit equals that civilization’s GDP (see "Gross Domestic Product"). If its currency is floated, it equals twice that amount.
The maximum borrowing that any single planetary bank can perform in a single turn equals its planet’s GPP (Gross Planetary Production). For the Imperial treasury, it cannot borrow more half of what it collected in taxes this turn (rounded down).
Civilizations that find themselves in debt beyond their Debt Limit will automatically be charged for the balance of the principle (at the Imperial Treasury level) to return it to its Debt Limit, as well as the usual debt service interest payments.
The strength of a civilization’s currency is
= (28 – that civilization’s current interest rate for debt; i.e., 3 to 25) * 4
+ a d8 each time that currency’s policy is changed to "fixed"
– a d12 each time that currency’s policy is changed to "floated"
–1 per consecutive turn that its floated currency was set to "Inflation"
+1 per consecutive turn that its floated currency was set to "Deflation"
-7 if the government is Illegitimate
-3 if the government is Questionable
+2 if the government is Established
+5 if the government is Venerable
+9 if the government is Hallowed
+ Treasury Standing
: Compare the current Imperial Treasury surplus or deficit to that civilization’s GDP (see "Gross Domestic Product"). If there is a surplus, divide this GDP figure into the surplus and score that many points (up to a maximum of 15, truncating all fractions). If there is a deficit and it is between 25% to 50% of this GDP figure, score –5 points; if it is between 50% and 100% of this figure, score –10 points; and if it is over 100% of this figure, score –15 points.–X for economic sabotage, rounded up to the next whole number (temporary variable affecting individual civilizations; removed at the rate of 50%, rounded up, per turn)
This value cannot go below –25 nor above +150
.Fix or Float currency?
Fixed
Floating
currency doubles that civilization’s borrowing power, displeases the New Orions (they want you tied to the AU), reduces Currency Strength, and can be a negative factor in assessing that civilization’s Global Social State. The act of switching from Fixed to Floating currency also gives a significant penalty to that government’s Legitimacy (and creates a small amount of unrest). A civilization with a floating currency is also subject to the effects of Inflation and Deflation and is vulnerable to counterfeiting (economic sabotage) events.If a civilization has a floating currency, it is subject to the effects of inflation and deflation. Inflating or deflating a civilization’s currency is an act of Government Policy.
Put simply, if that civilization is running in debt, it may do well to inflate its currency; if it’s running in surplus, it may do well to deflate its currency.
Inflation
adds to the Heavy Foot of Government (see HFOG); raises interest rates (see Interest Rates); lowers the currency rating; and reduces debts (they’re paid off with inflated currency). The latter means deficits in that civilization’s banks and tribute payment amounts owed on future turns are reduced by:–% * 2d10 (In other words, each turn that the policy is set to "Inflation," roll a single pair of d10s and reduce each bank deficit and currently obligated future tribute payment amount by a percentage equal to their sum.)
Deflation
reduces the Heavy Foot of Government (yes, with enough savings you can even get things at a "discount" because of a negative HFOG value; see HFOG); lowers interest rates (see Interest Rates); increases the currency rating; and increases any outstanding debts (now they’re owed stronger currency). The latter means deficits in that civilization’s banks and tribute payment amounts owed on future turns are increased by:+% * 2d6 (In other words, each turn that the policy is set to "Deflation," roll a single pair of d6s and increase each bank deficit and currently obligated future tribute payment amount by a percentage equal to their sum.)
Designer’s Note:
excessive inflation or deflation are both destabilizing. Factions get friskier and unrest becomes more likely as either of these settings exists for a prolonged period of time.Although interest rates are variable, the rate of interest on debts is always fixed at 2% higher than that awarded on surpluses. Interest rates can never go below 1% interest on surpluses exceed 25% on debts. (Hey, usury is always frowned upon.)
The Orion Central Bank
The Orion Central Bank sets the interest rates for all fixed currencies. It begins the game at 6% (for savings) and 8% (for debts). These rates can be adjusted by the will of the Orion Senate or via Events.
Civilizations with Floated Currencies
Civilizations that float their currency receive an initial interest rate equal to that of the Orion Central Bank at the time their currency is floated. However, changes in these interest rates automatically occur based on the following list of criteria:
Global Social State
: For each 0.25 that civilization’s Global Social State is above +0.50, its interest rates are lowered by 1%. For each 0.25 that civilization’s Global Social State is below –0.50, its interest rates are raised by 1%.Government’s Legitimacy
: Interest rates are increased by 3% for governments that are Illegitimate, 2% for Questionable, and 1% for Fledgling. They are lowered by 1% for governments that are Venerable and 2% for Hallowed governments.Currency Policy:
If the current policy is set to "Inflation," that civilization’s interest rates are increased by 2%. If the current policy is set to "Deflation," that civilization’s interest rates are decreased by 1%.Unemployment
: For each percentage point that civilization’s unemployment rates are below 6%, its interest rates are raised by 1%. For each two full percentage points that civilization’s unemployment rates are above 6%, its interest rates are lowered by 1%.Events
: These would vary by Event.Government Administration
: For those using a timer option to play MOO3, there is an inherent economic incentive to play swiftly. This would cause a temporary adjustment of interest rates for that turn only. There are two ways of computing where each civilization managed by a sentient player ends on the TVOM (Time Value of Money) Bar each turn as show below:The TVOM Bar
’s length is equal to the measure of time for that turn, either:1. Established as the fixed per turn time limit in games that used a fixed timer (i.e., "the maximum turn length is X minutes") –OR–
2. Spent during that turn in a variable per turn time limit in games that use a variable timer (i.e., "the turn ends X seconds after the # player presses DONE").
That measure of time (i.e., the TVOM Bar’s length) is then divided into 10 segments of equal size. The time spent before each player’s pressing of the DONE button is noted and assigned to its proper segment of the TVOM Bar. The interest rate effect of which TVOM Bar segment each player’s turn finishes in is listed below:
First & Second
(i.e., the least amount of time used or the fastest players): +1.5% on interest earned on surplus; -3% on interest paid on deficits.Third & Fourth
: +1% on interest earned on surplus; -2% on interest paid on deficits.Fifth & Sixth
: +1/2% on interest earned on surplus; -1% on interest paid on deficits.Seventh
: No effect.Eighth
: –1/2% on interest earned on surplus; +1% on interest paid on deficits.Ninth
: –1% on interest earned on surplus; +2% on interest paid on deficits.Tenth
(i.e., the most amount of time used or the slowest players): –1.5% on interest earned on surplus; +3% on interest paid on deficits.Concept art, screen shots, game graphics, information and other assets are provided courtesy of the games' respective developers. No company has reviewed or approved any content on this site except where noted.
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