Economic Rules

[Ottoman]

Income
Income can be collected from resources, taxes, production centers and commerce.
governments in this era are not very good about putting aside cash reserves, so any income not spent is lost (spent on nice parties, new dresses for the Queen etc)

Resources:
These provide 1 point of Income each, and represent things like lumber, coal, metals, food production, and general commerce of a region. They are assigned by the referee and new ones can be discovered as time progresses (representing expanded production) or sometimes based off new discoveries.

Financial Centers represent large amounts of available money, and work just like Resources in terms of income and supporting PCs. Any country can take out up 40 points loan--this is not required to come from a Financial Center, since it assumes that countries can borrow from bonds markets. However, a country with a financial center in it can take 80 points per year per FC. Interest rates will be decided by credit. The FC generates 1 point per year regardless, to signify taxation on private loans.


Craft Centers:
Although most items are still made by craftsmen, there are some cities that have such a concentration of craftsmen as to be particularly valuable in themselves. A craft center does not necessarily mean that a production center will show up there later. There are other factors at work. But they are a prerequisite to getting one later.

Each craft center has a value of 1, above and beyond any resources there already. Some cities are even more valuable and their rating will be indicated.

Production Centers:
Finally hit tech 3.5, early industrialization, these centers are worth 5 points. They replace 1 craft center and resource in home region they are base in. The mod will determine and where these centers will pop up.


Taxes:
Taxes are available at any time, but due to the difficulty of collecting taxes from a generally impoverished population this is not historically the main way that states generated income. They represents internal fees, tolls, taxes on how many chimneys and windows you have etc. They generate 1 point per 4 million people in peacetime (.25 per million). In wartime they generate 1 point per 2 million people (.5 per million) but are not generally popular--extend periods of wartime taxation could be used by the moderator to justify bad events making your life harder.

Commerce:
This represents international trade, etc, and is dependent your number of viable ports (not blockaded essentially). You get 1 Point per Port and these are determined by the referee. More can show up over time as you econ advances however. Entrepots generate 5 points of income per year.

You get .5 points per Commercial Fleet. You are limited to 3 commercial fleets per port. An entrepot gives you 10 extra slots.

[Ottoman]

Credit ratings influence the ability of PC and NPC nations to borrow from financial centers, foreign financial centers and occasional referee determined loans.

High Credit means low interest, while low credit means high interest or not being considered worthy of lending to at all.

Instead of using the real life ratings (AAAA etc), we are going for simplicity.

A Solid history of repayment on regular basis, no history of default or renegotiating terms. Interest 5%

B Good history of repayment, with occasional renegotiating of terms. Interest 7%.

C Limited history or no history of borrowing. Interest 10%, no loan over 10 years

D Poor history with frequent renegotiation or a history of at least one default in the last 50 years

F Poor history with frequent default or renegotiation or both, interest 15%, no loan over 5 years

[Ottoman]

Update to reflect the maturing of debt markets, I have up the limits on borrowing internally and via FC to reflect the advent of the Bonds Markets.

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