Virtual Economies and Macroeconomic Dynamics: Analyzing the Money Market and Inflation in Old School RuneScape

Thumbnail Image

Files

bachelor_Pahta_Arttu_2025.pdf (616.4 KB)

URL

Journal Title

Journal ISSN

Volume Title

School of Business | Bachelor's thesis
Unless otherwise stated, all rights belong to the author. You may download, display and print this publication for Your own personal use. Commercial use is prohibited.

Authors

Date

2025

Department

Taloustieteen laitos

Major/Subject

Mcode

Degree programme

Bachelor’s programme in Economics

Language

en

Pages

36

Series

Abstract

This thesis examines the macroeconomic dynamics of Old School RuneScape (OSRS). The game has a large-scale virtual economy, which is inspected through established economic theories. By constructing a Consumer Price Index (CPI) from long-standing in-game items, the thesis quantifies inflation and deflation trends from 2015–2025. Results show inflationary cycles during periods of rapid gold generation, followed by deflation after the introduction of monetary controls such as the Grand Exchange tax. The Quantity Theory of Money explains long-run price movements, while the Aggregate Supply–Aggregate Demand framework captures short-term update-driven shocks. Analysis of bond price trends reveals strong links between OSRS’s virtual economy and real-world currency markets. Jagex, who is the game’s developer, effectively acts similarly to a central bank, managing money supply and price stability through gold sinks and monetary interventions. The findings suggest that, despite design-specific constraints, traditional macroeconomic models are applicable to virtual economies, offering valuable insights into both digital and real-world monetary systems.

Description

Thesis advisor

Ozhegova, Alina

Keywords

macroeconomics, old school runescape, virtual economy, consumer price index, inflation, CPI

Other note

Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-202510268561

Collections

[kand] Kauppakorkeakoulu / BIZ (Open Access)