Stabilizing the economy: $L/resident

It's my understanding that LL tries to stabilize the economy by keeping a constant ratio of some amount of $L for every resident.

Assuming what I've heard is true, and not knowing much
about economics... is that a good thing for them to be doing?
Or are there other better ways to regulate the amount of
currency "in print" ?

If that IS a good way for them to do it, shouldn't it be based
more on the number of different accounts that have logged
in over the last 30-90 days, rather than the TOTAL number
of accounts, which includes a lot of people who just aren't
coming back, or perhaps not active enough in the economy
to really matter?

I'm interested in hearing thoughts...

Gabrielle

Yes, your understanding is correct. Philip said in the Jan Economic town hall that they aimed to keep the money in circulation at about L$4500 - L$4700 per resident.

However, doing reverse calculations based on the economic stats that LindenLab publishes and the number of current accounts (40,000+) the figure now seems to be more like L$5500 - L$6000.

Add to this the fact that most people accept the true number of "active" accounts is way lower than 40,000 then the L$ per user goes up even further.


This is the reason LL are droping the rating bonus payment to zero in an attempt to slow down the creation of new L$. Though there is a strong argument to say that they should have increased the money drains rather than decreasing the supply.

But shouldn't the real number be how much was taken out of the economy with rating V amount put in? Maybe all they did is lose a sink too.

Well, I for one have certainly stopped rating people all-together
now that I hear rating bonuses will go away. Even at $25/point
I ended up handing out 20 ratings before I stopped mostly
because I saw it as a way to reward someone for some
behaviour or build.... and encourage more of the same, but
now there will really be no benifit except perhaps pride that
one person has a higher score than someone else, which is
not a good place to put my money (I don't feel).

So in that respect, yes... they lost a sink.. and probably
from more people than just me for close to the same reason.


Now, as for trying to keep a certain number of $L per
resident. I'm surprised LL has not been trying to make
sure it's in line with the number of ACTIVE residents as
opposed to the total number. It seems quite obvious
that inactive people should not be considered in the
calculation. Hopefully their new VP of Finance will help
get this under control.

Gabrielle