I was reincarnated into another world, and it was a surprising country that 'devalues its currency by 4% every year.' Why the cash-loving villagers became poor, and the man who bought a run-down inn and real estate profited.

*This article is a work of fiction themed around inflation and wealth building. (The story begins below)

[Synopsis] Once upon a time, there was a country where the value of money gradually decreased.

Once upon a time, there was a country surrounded by the sea called the Kingdom of Shimaguni.

In that country, where swords and magic were commonplace, people lived by carefully storing their money (legal tender), called 'Rin,' in wooden boxes.

However, in the square of the royal capital, this declaration was made every year:

'We aim for 4% inflation. In other words, we aim to intentionally lower the value of our country's legal tender by 4% every year!!'

The people still believed in the Rin.

If you don't spend it, you're safe. If you save it, you're safe.

However, only the man who had been reincarnated into this country tilted his head in confusion.

'...In this situation, wouldn't the purchasing power of the Rin (money) decline?'

This is the story of the villagers who kept their Rin in wooden boxes and the man who set his sights on a small inn called 'Moonlight Pavilion.'

Conclusion first: What happened in this country

For busy adventurers, I will summarize the conclusion of the story first:

In a world where prices rise by 4% every year, even if the face value of cash doesn't decrease, its purchasing power does.

If your compensation (salary) doesn't rise as much as prices, your life will become difficult even if you work diligently.

Real estate can be equipment to counter inflation in terms of rental income, asset value, borrowing, tax systems, and group credit life insurance.

However, real estate investment is not an all-powerful holy sword.

There are also curses such as vacancies, repairs, rising interest rates, taxes, and the hassle of management.

In short, there is only one thing I want to say.

Cash is necessary. But cash alone cannot guarantee your future.

What follows is the story of the villagers who kept stuffing coins into wooden boxes without knowing that, and me, who bought a small inn.

Prologue: I Was Reincarnated in a World with a Surprising National Policy

When I opened my eyes, I was in an unfamiliar meadow.

There were two moons in the sky.

In the distance, there were stone castle walls.

For some reason, there was a rusted dagger at my waist.

"...Could this be what they call an isekai reincarnation?"

In my previous life, I was a very ordinary office worker.

I was shaken on a crowded carriage... no, a crowded train, waiting for payday, fearing for my retirement funds, and sighing as I looked at my bank account balance.

That was my life.

I had no special talent for magic.

I had no skill with a sword.

I had no cheat ability granted by a god.

There was only one thing I brought over from my previous life.

It was a little bit of financial literacy.

The name of the country I was reincarnated into was the Kingdom of Shimaguni.

It is a country that is just like any other fantasy world, where swordsmen hunt monsters, mages cast fireballs, and merchants travel the roads in horse-drawn carriages.

However, there was one surprising thing about this country.

A giant white tower stood next to the royal castle.

The name of that tower was the Central Bank.

In a world of swords and magic, there was a central bank.

Moreover, this country had a surprising national policy.

Chapter 1: The Central Bank's Declaration: 'We Aim for Inflation'

It was the third day since I started living in the Kingdom of Shimaguni.

The King, the Minister of Finance, and the leader of the Central Bank appeared in the royal capital's square.

Many people had gathered in the square.

Blacksmiths, herb sellers, adventurers, innkeepers, farmers, and students from the magic academy.

Everyone had a look on their face as if they were about to hear a divine revelation.

The leader of the Central Bank raised a golden staff and declared loudly:

"We aim for 4% inflation. In other words, we set a goal to intentionally lower the value of our national currency by 4% every year!!"

Applause erupted in the square.

"Well done, leader!"

"This will improve the economy!"

"If prices go up, merchants will make money, and if merchants make money, wages should go up too!"

I was the only one who froze.

4% every year.

It might sound like only 4%.

But if it continues for 10 years, prices will increase by about 1.5 times.

What you can buy for 1 million Rin today might not be buyable for that same 1 million Rin in 10 years.

The legal tender of this country is the 'Rin'.

The country itself has declared that it will lower the value of the Rin every year.

Of course, rising prices themselves are not necessarily bad.

If salaries and compensation rise at the same rate, people's standard of living is maintained.

Business might become more active, and the country might become wealthier.

But what if only prices rise, and income doesn't keep up?

The ones who suffer the most then are those who are clutching their Rin (money) tightly.

Right then and there, I remembered my memories from my previous life.

Cash looks safe.

But in a world of inflation, the value of cash is quietly eroded.

Without a sound, without bloodshed, just like a curse.

Chapter 2: Potion Prices Rise, Hunting Rewards (Salaries) Do Not

A few years later.

In the Kingdom of Shimaguni, just as the leader declared, prices gradually rose.

The first place I felt something was wrong was at the apothecary.

'A basic recovery potion is 120 Rin per bottle,' they said.

“Huh? It was 100 rin just the other day, wasn't it?”

“Medicinal herbs have gotten expensive.

The bottles, the magic water, and the transport costs have all gone up.”

The adventurers complained, but they had no choice but to buy them.

Entering a dungeon without potions is dangerous.

The next thing to go up was the cost of lodging.

The cheap inn that cost 800 rin a night became 900 rin, then 1,000 rin.

The cost of sharpening a sword at the blacksmith also went up.

Preserved food, carriage fares, and leather armor all went up too.

Similar conversations began to be heard all over town.

“Everything is so expensive lately.”

“I used to be able to live for a week on this amount.”

“The number of rin I have hasn't decreased, yet for some reason, life is getting harder.”

But the truly terrifying part was yet to come.

The rewards for goblin subjugation issued by the Adventurers' Guild had barely increased at all.

Ten years ago, it was 500 rin per goblin.

Even now, it's 520 rin per goblin.

Prices went up.

Potions went up.

Lodging costs went up.

The cost of repairing my sword has also gone up.

Yet, the rewards for adventurers have barely increased.

Furthermore, the kingdom has raised guild taxes, citing the medical expenses of elderly elves and the costs of repairing the castle walls.

Take-home pay isn't increasing.

If anything, it feels like it's decreasing.

In the corner of the tavern, a veteran adventurer muttered while staring at an empty mug.

Have I become weaker than I used to be?

No one could answer.

I answered in my heart.

No.

It's not that you've become weaker.

It's that the purchasing power of the Rin is weakening.

Chapter 3: Defensive Magic Called Cash Faith

Strangely enough, even while suffering from rising prices, the people of the Shimaguni Kingdom did not change one particular behavior.

Hoarding cash.

Lately... Check out the rest of the article below.