As of now, the Myrian economy is skyrocketing. The Government’s decision to lower the interest rates to 1.5% have allowed our companies to build up our tourism industry with cheap investments. Sure, asset prices are rising but that can be offsetted by the ever rising stocks, with low income investment tax rates ensuring their profits.
Our finances are mostly looking good, and our banks are one of the most active in the world. Surely this will ensure us an economic development for decades to come… right?
A dinner with a Myrian banker.
Good Old Myria, blessed by beautiful nature, focused on tourism. To construct infrastructure and tourist attractions, companies need money. We give out loans to them at a lower interests, satisfying the need of money. With domestic economy growing in the sectors of Assets and Stocks, We have found ourselves in a peculiar position. We are growing, yes, asset and stock prices are at an all time high… But I’ll let you in on a little secret. No one has real money to back the rise in demand and prices of stock, but the price keeps marching on and on. At least Tourist revenue is able to keep the companies profitable enough to make sure they can pay back their loans…Could you pass the Salt please?
OOC: What is this about?
Thanks to having a second plot, I can crash the economy all I want… I hope. Anywho, this is going to be a place where numbers and statistics will be dumped, where lives of citizens are recorded, and more.
(OOC: Translate the title)
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News > Opinion> Column
Is Myria on its way for a re-infection of the Myrian disease?
By Ilinca Velea, 26-03-2023
Traders work on the floor moments before the morning bell at the Meridian Stock Exchange November 21, 2007 Source: {source}.
It’s not an exaggeration to say that anyone with basic knowledge in economic history remembers “the Myrian Disease”, a term that describes the period of economic stagnation of Myria in the 1980s. Sadly for the Myrians, many evidence shows that Myria is in for another case of the disease. Unlike the last one, which was caused by the government, as too much government spending was spent juggling the needs of welfare, subsidies, and other projects. Patient Zero of a new case of the Myrian disease would be the banks and the tourist industry.
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Myria’s tourist industry is still reliant on the banks’ investments to fund the upkeep for infrastructure and expansion of tourist spots. The YRP Government, in order to support Myria’s transition to the tourism economy, had significantly slashed down interest rates in 2019. At the same time, the government kept buying bank stocks to keep them afloat. This was supposed to help the banks to extend credit to new businesses. While this policy has proven to be successful, it also caused the asset prices, including real estate and stocks, to rise. That alone is ok, even beneficial for the economy in some cases. However, the problem lies in the overinvestment in recent years. Businesses and individuals invested heavily in real estate and stocks, the results of that can be seen in the recent overcapacity and surplus of goods, with inflation growing high.
Luckily for Myria, the investment frenzy seems to be calming down as Tourist season approaches, and it is up to whatever party that gets elected to utilise that to prevent another case of the Myrian disease.
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