Money Matters: Utilizing Real Economic Principles in Fantasy Narratives

If fantasy writers, storytellers and authors believe that money makes the world go round in real life, it's probably worthwhile to examine the role of the economy within fantasy narratives and imaginary worlds too. Much like in the real world, the movement of money, goods and resources through an economy often has far reaching effects and direct links to the everyday workings and activities of the inhabitants and ruling classes within carefully considered fantasy settings.
How do kings build and maintain their wealth and peasants trade their handmade goods and services? Storytellers who follow and understand real economic movements and trading concepts like the Candlestick Pattern, which is a technical analysis tool traders use to determine market trends, have a built-in advantage over writers who don't. Examinations on how market influences and trends function in real life can assist fantasy writers in imagining rich and connected fantasy settings and societies grounded in lifelike economies.

Incorporating Supply and Demand in Fantasy Economies

One of the most underrated ways to add depth, realism and culture to a fantasy setting includes incorporating systems of supply and demand in fantasy economies. During the research phase of the world-building process, it can be easy to overlook how important a functioning economy can be. To avoid this, take a look at how resource scarcity, regional trade, market influences and the politics around companies in our world could serve as inspiration for the driving forces behind supply and demand in an imagined society.
Just like diamonds and platinum on Earth, rare minerals in fantasy settings may be influenced by high demand and short supply. If a narrative is driven by a rare mineral or other magical resource that's difficult to procure, pay close attention to where this item or resource is in highest demand and how this scarcity may create a competitive market. Consider the implications around supply and how rare, valuable resources could change the physical and political landscape of an area. Remember that secondary factors like climate, geography and conflict can additionally influence access to trade routes and the intrinsic value of rare resources.
Remember to consider the cultural and societal aspects of the fantasy world when incorporating supply and demand. It may be useful to think about how factors like natural disasters, political instability or the emergence of new technologies may disrupt the market and create interesting opportunities for characters to navigate or exploit. Traders and other non-player characters within an imagined world may serve as a source of rumors. Specific races, factions, or magical beings may also have unique perspectives on trade and commerce to enrich the world further.

The Role of Currency in Fantasy Worlds

Just like in the real world, imagined currency can play an essential role in shaping an economy or society. When it's time to develop a system of currency and examine exchange rates within a fantasy world, consider how different regions or factions value their own currencies or systems of trade. The availability of resources, the power of ruling factions, or the presence of magical elements can impact the value of goods and services and create opportunities for characters to profit or negotiate.
Imagined currencies can take various forms depending on the world's unique characteristics and may be similar to traditional forms of currency such as coins made of precious metals or unconventional forms like gems or magical artifacts. In some cases, the value of currency could be tied to the intrinsic properties of a magical material, metal or gemstone. Bartering systems based on the exchange of goods could additionally be considered, especially in rural settings away from towns and cities where currency may be scarce.
Overall, currency in an imagined world has the opportunity to serve as a fundamental element in shaping the economy, society, and narrative of an area while reflecting the social and cultural aspects of the fantasy setting. The possession of wealth and currency can symbolize power, status, and influence and can be used as a device to highlight economic disparities, social hierarchies, or the influence of different races, regions or factions.

Exploring the Role of Banks and Financial Institutions

From protecting the wealth of the ruling class to serving as repositories of ancient knowledge on the history of the world, imaginary financial institutions can hold a wealth of opportunity for world-building. In fantastical settings, the role of banks and financial institutions can be endlessly diverse and imaginative while reflecting the unique characteristics and needs of the world they exist in. Magical banks could enforce laws and regulations related to magical currency and exchange, assist players with funds for quests and act as a narrative device by protecting incredibly powerful items and artifacts.
Just like banks in the real world and Gringotts in the Harry Potter universe, banks in fantastical realms can serve as secure places to store rare and valuable items and materials. While banks can play a vital role in facilitating trade in large cities and provide a good backdrop for a heist, they can also play a functional role in facilitating trade and commerce and provide services such as currency exchange or loan services. Within the confines of an imagined world, could a magical bank provide unique services such as spell insurance, potion financing, or even magical creature insurance?

Creating Economic Systems in Storytelling

While exploring how the presence of a considered economic system affects trade, production, conflict and consumption within their narratives, world-builders have a unique opportunity to delve into the ethical and moral dilemmas that arise whenever money, wealth and power are involved. It's clear that with a working understanding of how money and economic systems influence politics and power, storytellers can add a unique and imaginative layer of complexity a world while providing thought-provoking themes for readers and players.
Incorporating real economic principles within fantasy narratives adds depth, believability and realism to imagined settings. By considering the role of currency, powerful financial institutions, supply and demand and economic systems, storytellers can create more immersive worlds that explore complex themes while entertaining and captivating players. Next time you sit down to create a world, consider taking inspiration from real world economics and keep an eye out for the economic underpinnings that make your favorite imagined worlds come alive.