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Economy interface

Economics in EU4 revolves around the earning and expenditure of Gold Icon.pngducats, the game's international currency. The national and international economy underpin almost every function of a country, and often fuels international diplomacy. Understanding and developing a country's economy yields better national finances, allowing the country to boost its standing in the world and further grow at a faster pace.

The Economy panel in the Country interface displays a summary of the player's finances and provides a few important actions relating to it (such as Loans and Reduce Inflation).

Overview[edit | edit source]

The total amount of Gold Icon.png ducats in a country's treasury is updated at the beginning of every month. The amount by which this changes is the total Income.png income minus the Expenses.png expenditure for the previous month. The various factors which affect these amounts are listed below. In addition, various Msg event.pngevents may add or take away from the treasury.

Aside from the continuing incomes and expenses mentioned below, Gold Icon.png ducats may also be gained or spent as one-time earnings or payments in the following ways:



  • Constructing buildings
  • Estate interactions
  • Hiring and salary costs for Advisor.pngadvisors
  • Recruitment costs for Infantry.pngland and Heavy ship.pngnaval units
  • Providing gifts, subsidies, and loans to other countries through Diplomatic power.pngdiplomacy
  • Supporting rebels in another country through espionage
  • Paying another country to share knowledge
  • Embracing institutions

Income[edit | edit source]

The "Income" column lists regular streams of income, and effect by modifiers plus efficiency (in grey, middle column).

Income.pngIncome is the sum of all money gained monthly. Unlike in EU3, all income is liquid and does not need to be minted. The continuous sources of income that a country has is listed in the "Income" column, which is on the left side of the Economy panel (see right). This panel lists both the total amount from each source and that source's bonus (if any). Hovering over the source or bonus shows a tooltip with detailed information, such as modifiers or a breakdown of income by province.

The maximum amount of Gold Icon.pngducats a country can have in its treasury is 1 million. However, this number is considered to be difficult to reach without using console commands or mods.

Taxation[edit | edit source]

Main article: Tax

Yearly tax income.pngTax comes directly from the population of a province, and produces a relatively dependable baseline income. Each province has a Base tax.pngbase tax (which may be increased by spending Administrative power.png administrative power), and a Local tax modifier.pngtax income efficiency. The yearly province tax amount is the multiple of the two amounts. There is also a National tax modifier.pngNational Tax Income, that is calculated at a countrywide level. Various tax modifiers exist that may change this amount.

Production[edit | edit source]

Main article: Production

Production.pngProduction is a measure of the amount of income generated in a province by local producers of its trade good. Unlike in EU3, production income is added directly to the state's income each month. This amount depends on the good's prices, the province's base production, and the Production efficiency.pngproduction efficiency (among other modifiers).

Trade[edit | edit source]

Main article: Trade

The Trade value.pngtrade value produced by each province flows into the trade network, where it is eventually collected by capitals and Merchants.pngmerchants and converted into Gold Icon.pngducats. Careful management of trade can make it the most powerful source of income by far, which makes control of trade-important provinces instrumental for a long-term increase of a nation's economical power.

Gold[edit | edit source]

GoldGold is a special "trade" good. Gold does not produce any Trade value.pngtrade value; instead, it is converted directly into ducats. Gold production income is 40 Gold Icon.pngducats per year per unit produced, with the exception of unreformed New World natives, who only receive 1 Gold Icon.pngducat per year per unit produced. Income from gold causes Yearly inflation reduction.pnginflation per year equal to half its proportion of the country's income; at 100% income the country's inflation would increase by 0.50% per year.

Treasure fleet[edit | edit source]

Subject colony icon.pngColonial nations with gold provinces will not receive the income of gold for themselves, but instead will store it in a ‘Treasure Fleet Counter’ that counts up towards a certain sum depending on the size of the colony’s gold mines. Once the counter is full, the colony will send a treasure fleet. The treasure fleet travels downstream along the trade routes, passing each node between the colonial nation and its overlord's trade capital. If there are privateers present in these nodes, they will steal a share of the gold corresponding to their power in the node. At the end of the journey, any money that remains is given to the overlord nation. Both the overlord nation and nations privateering suffer Yearly inflation reduction.pnginflation similar to that gained from gold mines.

The income of treasure fleets may be increased by:

Treasure fleet income.png Conditions
+50% with Grand Armada.png ‘Grand Armada’ naval doctrine
+25% with Gov compass.png ‘Exploitation of the New World’ government reform (tier 7 Government monarchy.png monarchy, Government republic.png republic and Government theocracy.pngtheocracy)
with Exploration idea 7: Global empire
+20% with Gov merchant ship.png ‘Council of the Indies’ government reform (tier 3 Government monarchy.png monarchy and Government republic.png republic)
with 'Expand treasure fleet' button in the subject interaction menu (it accumulates)
with Great project el escorial.png El EscorialGreat project level icon tier 3.png while province culture is in Iberian group and same as or accepted by owner (only with Leviathan.png)
+10% with Great project el escorial.png El EscorialGreat project level icon tier 2.png while province culture is in Iberian group and same as or accepted by owner (only with Leviathan.png)
+5% with Great project el escorial.png El EscorialGreat project level icon tier 1.png while province culture is in Iberian group and same as or accepted by owner (only with Leviathan.png)

Note: Without El Dorado.png ‘El Dorado’ or Golden Century.png ‘Golden Century’ DLC these modifiers are replaced with Global tariffs.png global tariffs modifier of one-tenth the magnitude.

Nations who do not have their trade capital downstream of their colonies’ trade nodes will be unable to receive treasure fleets. In these cases, the colonial nation will simply keep the gold for themselves, paying just the usual amount in tariffs.

Tariffs[edit | edit source]

Main article: Tariffs

Subject colony icon.pngColonial nations are required to transfer a part of their total income, called Global tariffs.pngtariffs, to their overlord. At their formation, this amount is 10% of their income. The tariffs can be set for each colonial nation by the overlord in the Subjects interface or may change through Msg event.pngevents. Higher tariffs increase the level of Liberty desire in the colonial nation.

Vassals[edit | edit source]

Main article: Income from vassals

Vassal.pngVassals are required to pay a Income from vassals.pngfee to their overlords. The basis for calculating this fee is the Yearly tax income.pngtax income of the vassal. The amount that must be paid is modified by the ‘vassals tax efficiency’ of the overlord, which is influenced by the overlord's Legitimacy.pnglegitimacy, among other factors. Apart from the fee, vassals may be requested to give all of their trade power to their overlord. While this action will increase their liberty desire by 30 %, this may significantly boost the overlord's trade income, especially if he has better trade efficiency.

Harbor fees[edit | edit source]

Signing a fleet basing agreement with another country will cost an amount equal to 0.1Gold Icon.pngducats[1] per month for every port belonging to the other country with a minimum of 0.5Gold Icon.pngducats and maximum of 2.0Gold Icon.pngducats per month.

The AI never asks to access ports of the player, and the player can never offer it (there is a -1000 "strategic interests" modifier). Whether the province is cored or not has no effect on the cost of fleet basing rights.

Subsidies[edit | edit source]

Main article: Diplomacy § Give subsidies

Countries that have a strategic interest in another country may grant subsidies to that country, which is given in the form of a certain amount of the benefactor's Income.png monthly income each month for a certain number of years.

Spoils of war[edit | edit source]

The Spoils of War section includes income gained from military and wartime actions. This includes:

  • Looting: Looting occurs when a province (either occupied or besieged) has hostile units stationed in it. Each province has a loot bar that depletes based on the amount that the army can loot every month.
  • Privateering: A country can send their Light ship.png light ships on missions to Privateer in certain sea zones, aiding pirate nations in exchange for a portion of their earnings.

War Reparations[edit | edit source]

A country has the option to demand 10% of an enemy's income for 10 years as part of a peace deal.

Condottieri[edit | edit source]

It is possible to offer a country Condottieri, which are armies rented out for money. Note that, in the event that the contractor is a player-controlled country, the army will stay under the control of the AI.

Knowledge Sharing[edit | edit source]

Main article: Diplomacy § Knowledge Sharing

A country may offer other countries progress in institutions they haven't yet embraced. This costs Gold Icon.png 10% of their monthly income, which they pay direct to the country that's sharing. Only one knowledge sharing agreement may be made at a time.

Expenses[edit | edit source]

The "Expenses" column showing major payments and maintenances.

A country's Expenses.pngexpenses, i.e., its monthly continuous payments, is similarly listed in the Expenses column on the right side of the Economy panel. This column lists two types of expenses:

  • Automatic expenses: These are expenses which are automatically deducted from the treasury. They cannot be modified from the Economy panel, simply viewed (except for Interest per annum.pngInterest, which may be changed through the Loans interface).
  • Adjustable expenses: These expenses are shown with sliders, to adjust the amount being spent monthly on them. Changing these expenses using the sliders will have an impact on the action being done or the asset being maintained.

Advisors[edit | edit source]

Main article: Advisor cost

Advisor.pngAdvisors have a base monthly salary equal to the square of their skill level, increased by 0.5% per game year since 1444. Hovering over this in the Expenses column shows a tooltip that lists other modifiers, including Inflation.

State maintenance[edit | edit source]

Main article: State maintenance

Icon states.pngStates require continuous monetary upkeep, depending on the development of the provinces, the distance to the capital and further modifiers.

Interest[edit | edit source]

Main article: Loans

Interest per annum.pngInterest must be paid on loans. The default interest rate is 4%, which may be changed by modifiers. Further information is given in the Loans section below.

Diplomatic expenses[edit | edit source]

Diplomatic expenses.

Hovering over Diplomatic Expenses shows a tooltip with a more detailed breakdown of a country's diplomatic expenses (see right). These are as follows:

  • Subsidies: Gold Icon.pngDucats sent monthly to other countries as subsidies, if any.
  • Vassal fee: If the country is a Vassal.pngvassal, the amount of Income from vassals.pngvassal fees sent to their overlord.
  • Outgoing tariffs: If the country is a Subject colony icon.pngcolonial nation, the amount of Gold Icon.pngducats paid to their overlord as Global tariffs.pngtariffs.
  • War reparations: Amount paid to winners of previous wars (usually 10% of income for 10 years). See war reparations for more details (Requires Art of War.pngArt of War DLC).
  • Support loyalists: Amount spent to junior partners in Personal union.pngPersonal unions to reduce their Liberty desire.pngLiberty desire.
  • Send officers: Amount sent to March icon.pngmarches to reduce their liberty desire and provide a bonus to their armies.
  • Knowledge sharing: Amount sent to subjects to spread institutions. (Requires Rule Britannia.pngRule Britannia DLC).
  • Condottieri fees: Amount paid to other countries as rent for Condottieri (requires Mare Nostrum.pngMare Nostrum DLC).

Fort maintenance[edit | edit source]

Main article: Forts

This shows the amount spent monthly to maintain the Fort level.pngforts present in a country. The amount spent on each fort depends on its fort level. Forts can be mothballed while at peace to reduce their Fort maintenance.pngmaintenance by a -50% modifier. Doing so will inhibits the forts upkeep of Army tradition.pngarmy tradition and remove the defenders making it easy to conquer in a war. Further modifiers are granted by ideas and policies among others.

Colonial maintenance[edit | edit source]

Main article: Colonial maintenance

Colonies require a monthly maintenance while they grow until they become full cities. The cost per year is:

So, the cost per month is roughly:

Thus, a 5 Development.pngdevelopment province will cost about 2.10 Gold Icon.pngducats per month to colonize, while a 6 development province will cost 2.12Gold Icon.pngducats per month. The cost is further increased quadratically for each colony over the number of Colonists.pngcolonists the country has. Colonial maintenance can be reduced, but at the cost of colonial growth. Provincial modifiers to colony growth are applied separately to this change. So, a tropical colony will shrink by -110 settlers with zero maintenance due to the additional -10 settlers provincial modifier. Colonial maintenance also does not affect growth from colonist agents.

Colonists.pngColonists cannot be sent while a country is bankrupt.

Missionary maintenance[edit | edit source]

Main article: Missionary maintenance

The costs of an active Missionaries.pngmissionary depends on the founding and the development and local autonomy of the province which he is converting.

Root out corruption[edit | edit source]

Main article: Corruption

A country can lower Corruption.pngcorruption by spending up to 0.05Gold Icon.pngducats per effective Development.pngdevelopment per month under the Root Out Corruption slider, for a maximum of -1% every year. Effective development is affected by Autonomy.pngautonomy. The total cost of rooting out corruption is calculated using the formula:

cost of rooting out corruption = corruption cost multiplier × effective development

where effective development is determined by the formula:

effective development = total national development − Σ(total province development × local autonomy)
  • Corruption cost multiplier is the amount spent per effective development. This is the amount that is controlled by the slider. It can be changed from 0Gold Icon.pngducats per month to 0.05Gold Icon.pngducats per month.
  • Local autonomy is used in decimal form in the above calculations.

Example[edit | edit source]

Total province development and local autonomy for each of the three provinces for Andhra

For the three-province country Andhra (see right), the maximum cost to root out corruption can be calculated as follows:

  • Total national development: Kosta + Velanadu + Konaseema = 11 + 15 + 11 = 37
  • Sum of effective development changes by each province: Σ(province development × local autonomy)
    • Kosta: 11 × 0.25 = 2.75
    • Velanadu: 15 × 0.25 = 3.75
    • Konaseema: 11 × 0 = 0
  • effective development change = 2.75 + 3.75 + 0 = 6.5
  • effective development = total national development − effective development change = 37 − 6.5 = 30.5

So, the final cost will be:

total cost of rooting out corruption = 0.05 × 30.5 = 1.52 ducats/month

The calculations above mean that higher Autonomy.pnglocal autonomy will decrease the cost of lowering corruption.

Army maintenance[edit | edit source]

Main article: Army maintenance

At full Land maintenance modifier.pngarmy maintenance, each fielded regiment has a monthly maintenance cost equal to 2% of its Regiment cost.pngrecruitment price. All modifiers to maintenance are added together and applied to this. Reducing army maintenance using the slider affects Reinforce speed.pngreinforcement rates and Morale of armies.pngmorale, to 0% reinforcement rate and a -100% modifier to morale at minimal funding. Condottieri reinforcements and maintenance costs are applied even when maintenance slider is at zero.

Maintenance costs increase over time as a country advances in Technology.pngtechnology.

Maintenance costs will reduce when a regiment suffers casualties, but will increase due to an added cost for reinforcement. Maintenance costs will also increase when a country exceeds its Land forcelimit.pngforce limit.

Fleet maintenance[edit | edit source]

Main article: Navy maintenance

Naval maintenance modifier.pngFleet maintenance works the same as army maintenance but with certain exceptions:

  • First, naval maintenance increases at discrete steps rather than continuously. It is increased by 10% at Diplomatic technology.pngDiplomatic technology levels 3, 5, 9, 15, 19, 22, 25, 27, 29, and 31 (to a total of +100%).
  • Third, vessels do not cost increased maintenance to Global ship repair.pngrepair, but also do not cost reduced maintenance if damaged.

Further differences, including those on how modifiers are applied, are listed on the Navy page.

If the Art of War.pngArt of War DLC is enabled, mothballing allows naval units to be left unusable in a country's docks for lower maintenance, while giving ships 5% hull damage per year of being mothballed until 25% health remains.

Loans[edit | edit source]

Bank loans[edit | edit source]

The size of the loans are determined by your country's development as per the formula below, while the number of loans are a function of the interest (that is, the maximum number of loans are limited to when your total interest equals your monthly income (the point where one goes bankrupt)

Taking a loan grants an amount of money equal to result of the following formula:

loan size = 0.5 × Development.png total development × (1 + Trade efficiency.png trade efficiency from diplomatic technology)

A loan may be taken at any time, although each loan taken increases inflation by 0.1.[1] A loan may be paid back in full, plus the total remaining interest owed, at any time during the loan period. If a loan expires and the borrower cannot (or chooses not to) pay the principal, the loan will be extended for an additional 5 years at the current interest rate, and inflation will increase by an additional 0.1.

Debt Restructure: Given the same increase in inflation whenever a loan is renewed automatically, it may be good to "restructure" your debt every now and then. That is, over time as your development increases your loan sizes increase, however when the old loan renews it gives the same inflation but for a smaller original loan amount. Therefore rather borrow doing a new larger loan to repay the old one before it expires. This allows you more debt capacity as you may recall the size of the loan (based on development) is determined separately from the number of loans (based on interest vs income).

Determining total loans outstanding by others: There is no ledger to view this, however, as a Great Power one can hover over the great power action "Take on Foreign Debt" to see the target nation's total outstanding loan balance. Alternatively, if one is not a great power with access to this menu option, there is a rough short-hand that is fairly accurate to help estimate this value. In the Ledger under "Country", "Score Comparison" hover your mouse over the "Adm. Rating". Loans will be shown in a red negative number, where each −0.02 is roughly equal to one outstanding loan. Hence, −0.08 would roughly be equal to 4 loans. To determine the value of each loan view the country development under the ledger and divide the development by 2. Hence, a 500 total development country would roughly be able to borrow 250 ducats per loan. Another method would be to use the "Declare War" on the target county's ally. One of the reasons for not joining in the war would be "loans outstanding" and a total debt value would be shown.

Interest[edit | edit source]

Loans have a default interest rate of 4% per year,[1] paid monthly. The interest rate is influenced by the following factors. Note that these add to or subtract from the base 4%, so for example "Interest per annum.png−1% interest per annum" with no other modifiers results in an interest rate of 3%. The minimum interest rate that has to be paid is 1%.[1]

Interest per annum.png Conditions
−2%.00 as optional difficulty bonus (for the player (easy, very easy) or the AI (hard, very hard))
−1%.00 as lucky nation (AI only)
−0.5%.0 with Great project potosi.pngCerro Rico del PotosíGreat project level icon tier 3.png or with Zacatecas Mine City (only with Leviathan.png)
−0.5%.0 with the Interest per annum.png Jewish festival of Sukkot aspect
−0.25% with Ganga.png Ganga as personal deity (for Hinduism Hindu nations)
−0.25% during Parliament.png parliament issue “Contribute to Government Debt Payment”
−0.25% with Papal action: Forgive Usury
−0.25% with Great project potosi.pngCerro Rico del PotosíGreat project level icon tier 2.pngor with Zacatecas Mine City (only with Leviathan.png)
−0.02% for every percentage point of Revanchism icon.pngrevanchism
+1%.00 per point of negative Stability.pngstability
+5%.00 if bankrupt

Ideas and policies

Interest per annum.png Traditions Ideas Bonuses Policies
  • Acehnese/Pasai idea 6: Acehnese Moneylending
  • Gujarati Princedom idea 3: Safe Harbor for Jain Bankers
  • Genoese traditions
  • Economic idea 6: Debt and Loans
  • Augsburger idea 4: The Fugger
  • Austrian idea 3: Fugger Banking
  • Brabant idea 5: Banks of Antwerp
  • Frankfurter idea 3: Standardization of Exchange Rates
  • Great Shun idea 3: Hidden Treasury
  • Gutnish idea 7: Found Visby Bank
  • Hamburger idea 6: Berenberg Bank
  • Hanseatic idea 7: The Hansa Bank
  • Swabian idea 2: Fugger Banking
  • Tuscan idea 3: Tuscan Banking
  • Innovative-Trade: The Banking System

Various events and decisions.

Loans from countries[edit | edit source]

Countries that have a strategic interest in another country's wars may grant loans to that country. With Rights of Man.png Rights of Man active, rulers with the Indulgent trait will accept loans from human players if needed.

Interest[edit | edit source]

The interest rate of loans from countries is set by the country granting the loan.

CB for cancelling loan[edit | edit source]

If the borrower refuse to pay the principal when a loan expires, the lender gets a 12-month CB "Cancelled Loan" against the borrower.

Loans from estates[edit | edit source]

The estate privileges Indebted to the Bourgeoisie and Indebted to the Jains provide five loans at 1% interest. Repaying the loans automatically removes the privilege.

Debase currency[edit | edit source]

Debasing currency gives the player a loan's amount of money at the cost of 2 Corruption.png corruption. It cannot be done if corruption is already over 90. This is useful if the player wants to repay it over time at their pace (not receiving even more inflation for re-newing loans); however, it is a lot more costly than a regular loan to be repaid using only "Root Out Corruption", plus the negative modifiers for having corruption. But the value to root it out can be reduced significantly if the player is ahead of time on diplomatic and/or administrative technology, and if its ruler has the Incorruptible trait, giving a "negative" interest if the player is willing to wait for it to decay naturally, with the only penalty the negative effects from corruption. The cost for rooting out corruption depends on the autonomy modified development while the loan size depends on the unmodified development. With a high average autonomy (over 60%) debasing currency gives more money than it cost to root out the corruption.

Bankruptcy[edit | edit source]

If the combined monthly interest of loans exceeds a country's monthly income, the country will be forced to declare bankruptcy. It is also possible for any country with at least one loan to manually declare bankruptcy.

Bankruptcy clears all loans and removes 25% of the country's current inflation (unless already bankrupt), but gives a number of negative effects for 5 years:[2]

Interest per annum.png +5%.00 Interest per annum
Morale of armies.png −50%.00 Morale of armies
Morale of navies.png −50%.00 Morale of navies
Reinforce speed.png −25%.00 Reinforce speed
Secretariat faction influence +0.25% Secretariat faction influence
Guilds influence +0.25% The Guilds influence
Manpower recovery speed.png −100%.00 Manpower recovery speed
Sailor recovery speed.png −100%.00 Sailor recovery speed
Advisor cost.png +50%.00 Advisor cost
Monthly fervor.png −1.00% Monthly fervor
Autonomy.png +0.05% Monthly autonomy change
Institution spread.png −50%.00 Institution spread
Militarization of state.png −0.50% Militarization of state
Absolutism.png −2.00% Yearly absolutism
Technology cost.png +50%.00 Technology cost
Idea cost.png +50%.00 Idea cost
Mandate.png −0.10% Mandate growth modifier
Great project upgrade cost.png +50%.00 Great project upgrade cost
  • Global settler increase.png −200 Global settler increase[3]
  • −1000 respond to an ally's call to arms

Entering bankruptcy has the following immediate effects:

  • Lose Yearly prestige.png 100 prestige
  • Lose Stability.png 3 stability
  • Lower Legitimacy.png legitimacy to 0
  • Lose Republican tradition.png 25 republican tradition (other government types' scores are not affected)
  • Lose all Gold Icon.png money in the treasury
  • Reduce All power costs.png all monarch power to −100
  • Disband all mercenaries
  • Disband all armies and fleets over force limit
  • Automatically fire all advisors
  • Cancel all buildings, great projects and units under construction
  • Cancel all coring or culture conversion currently in progress
  • Gain Devastation.png 10% devastation in all provinces
  • Remove the 'Recent Uprising' modifier from all provinces
  • Destroy all buildings built or upgraded in the last 5 years (hence one cannot deliberately borrow to build buildings before declaring bankruptcy, one will simply gain inflation and lose all the buildings)
  • Downgrade all centers of trade by 1 level
  • Remove all trade company investments

Bankruptcy strategy[edit | edit source]

Deliberately going bankrupt, though dangerous, can be a powerful tool for restoring the economy if managed carefully. Try to have truces lasting at least 5 years with as many dangerous neighbors as possible, so they can't attack during bankruptcy. Before declaring bankruptcy, spend all monarch points on developing provinces or boosting stability (to at least +1 - less will be wasted, the best is to boost stability to 3 before declaring as bankruptcy reduces it by 3), as they will all be lost otherwise. Ensure that no provinces are in the process of being cored. Colonies should be abandoned unless very close to completion (no provinces can be colonized during bankruptcy).

Rebels are more difficult to fight while bankrupt due to the penalties to army morale, but can be beaten with enough numbers (just feed a series of small stacks one day apart into the same battle - the small morale boost from fresh new troops will help win these costly battles). Get stability back up to at least 1 (to avoid instability events) as soon as possible and also consider spending military points to raise legitimacy (requires Rights of Man.png Rights of Man DLC).

Inflation[edit | edit source]

In economics, inflation is an increase in the money supply which contributes to an increase in the price of goods over time. In gameplay terms, inflation makes all expenses cost more. Low levels of inflation (around 10%), though not ideal, are reasonable. Around 20% or higher, this could signify an economic catastrophe, and measures must be taken to avoid total collapse. However, as soon as inflation is 5+%, it's possible to get bad events because of the high inflation incurring stability drops or increased local autonomy.

Contrary to real life, inflation in game does not mean constantly increasing prices, but rather a flat increase of the country's expenses. In real life, certain incomes would increase with inflation as well. This reflects that the in game "ducats" have a constant value over the course of centuries and serve as an absolute indicator of value. The in-game inflation simply represents the inflation over the time between collecting income and spending it, therefore representing that the income has lost value while it was sitting in the country's treasury.

Gaining inflation[edit | edit source]

Inflation is increased by the following:

  • Each loan taken or extended increases inflation by +0.10.
  • Income from gold increases inflation by 0.50 per year times the proportion of income from gold relative to 100% of total income. Accordingly, assuming one has a Master of Mint, ensure that income from gold is less than 20% of total income so as not to increase inflation. Flag of Kilwa Kilwa idea 5: Gold of Sofala and Flag of Zimbabwe Zimbabwe idea 3: Gold Deposits decrease this amount by -20%.
  • Lump sums of monetary compensation claimed in a peace treaty (but not reparations) cause a one-time increase of inflation.
  • Selling provinces or ships to other nations
  • Receiving gifts from other nations
  • (Requires El Dorado.pngEl Dorado DLC) Receiving or plundering treasure fleets
  • Various events can increase inflation.

These are all situations where the country's money supply is expanded. In economics, an expansion in the supply of money without corresponding economic growth causes a decrease in its value, i.e. inflation. Before the middle of the 20th century, and certainly during the period of EU4, currency was only considered money to the extent that it was either made of or backed by gold (and silver, which is represented by gold in the game), which is why gold income (a direct injection of pure money) causes inflation.

Reducing inflation[edit | edit source]

Passive[edit | edit source]

Several effects reduce inflation by a specific amount per year:

Yearly inflation reduction.png Conditions
  • “Control over Monetary Policy” privilege for the Burghers.png burghers, Vaishyas.png Vaishyas and Jains.png Jains estates
  • employing a Advisor Master of Mint.png Master of Mint advisor
  • for 20 years after the “Forgive Usury” Papal interaction
  • during Parliament.png parliament issue “Contribute to Government Debt Payment”
  • for trading in Gems.png gems
  • with difficulty set to very easy for players (or very hard for the AI)
  • assimilating the Southern African culture group as the Flag of Mughals Mughals
Yearly inflation reduction.png Traditions Ideas Bonuses Policies
  • Somalian idea 3: African Minting
  • Amago traditions
  • Lanfang traditions
  • Mexican traditions
  • Mutapan traditions
  • Economic idea 2: National Bank
  • Aksumite idea 7: Coin Minting
  • Andean idea 3: Tears of the Sun
  • Brazilian idea 3: Mines of Minas Gerais
  • Bregenzer idea 5: The Sale of Bregenz Titles
  • Butua idea 2: Strict Gold Trade Regulations
  • Corsican idea 5: The Bank of Saint George
  • Dutch idea 1: Found the Amsterdam Wisselbank
  • Malvi idea 6: Jain Bankers
  • Navarran idea 4: Cámara de Comptos
  • Sienese idea 3: The Bank of Siena
  • Slovak idea 3: Golden Kremnica
  • Sonoran idea 3: Gold, Gold, Gold!
  • Austrian idea 3: Fugger Banking
  • Revolutionary French idea 3: Franc Germinal
  • Swabian idea 2: Fugger Banking
  • Kilwan idea 5: Gold of Sofala

Furthermore, various events, decisions and mission rewards can affect inflation.

Active[edit | edit source]

If passive means are unavailable or insufficient, the Reduce inflation.png ‘Reduce Inflation’ button in the budget panel reduces inflation by −2.0 in exchange for Administrative power.png 75 administrative power.

The modifier ‘reduce inflation cost’ affects these costs.

Reduce inflation cost.png Conditions
+50% as Flag of Poland Poland with Privilege royal authority.png “Pacta Conventa” privilege for the Nobility.png nobility estate

War taxes[edit | edit source]

Counter-intuitively, war taxes do not increase tax income. They instead decrease army maintenance as long as war taxes are toggled but cost Military power.png 2 military power per month. When at peace, both the bonuses and the cost are disabled.

The bonus given are:

Land maintenance modifier.png −15% Land maintenance modifier
Naval maintenance modifier.png −15% Naval maintenance modifier
Mercenary maintenance.png −5% Mercenary maintenance

The following reduces war taxes cost:

War taxes cost.png Conditions
  • being emperor or elector of the Holy Roman Empire after HRE reichskrieg.png ‘Reichskrieg’ imperial reform while at war with enemies of the empire
  • with Ab free war taxes.png ‘Improved Wartaxes’ ability during the Age of Discovery.png Age of Discovery
  • with the Great project level icon tier 3.pngSankin-kotai Palaces Great project
−50% with Privilege exempt officers from jaziya.png “Levy War Contributions” privilege for the Vaishyas.png vaishyas estate
  • with the Great project level icon tier 2.pngSankin-kotai Palaces Great project
  • Mercenary idea 5: Benefits for Mercenaries

Footnotes[edit | edit source]

  1. 1.0 1.1 1.2 1.3 See in /Europa Universalis IV/common/defines.lua.
  2. See in /Europa Universalis IV/common/static_modifiers/00_static_modifiers.txt (Static modifiers#Bankruptcy).
  3. From /Europa Universalis IV/common/defines.lua: BANKRUPTCY_COLONIAL_GROWTH_PENALTY = -200, -- growth penalty for bankruptcy

Ideas and Policies Idea groupsNational ideasPolicies
Ages and Institutions AgesInstitutions
Innovativeness and Technology InnovativenessTechnology