By Asura.Jesyvut 2008-12-15 13:24:22
Deflation.
Economics 101: Money taken out of an economy will cause prices to fall. (SE bans gilsellers, less gil in the economy to spend on items, so item prices must drop to compensate)
It's not really a "good" or "bad" thing to be at the top of the economic index. It simply means that item prices are higher, things cost more -- there are probably more gilsellers(not necessarily, but it is an easy excuse) + gil in your servers economy the higher up the economic index you go.
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In my opinion: If you have gil accumulated and are not spending it on items(Item prices are falling), it is nice when your server moves DOWN in the economic list. Your gil is worth more and lasts longer when the server is moving down the list.
If you have more items and less money, it's not a good thing when the server moves down the list. Your items convert into less gil when the server is higher up the list.