BANK OF MINCE

About the Bank

The Bank of Mince is central monetary authority responsible for monetary policy, treasury management, economic stability and the development of the server economy.

About the Bank of Mince

The Bank of Mince serves as the central monetary authority of the server economy. Its responsibilities are to manage state reserves, administer taxation, issue financial instruments, monitor economic conditions and publish official economic statistics and reports.

The Bank aims to maintain a stable and functional economy, preserve the value of the currency, encourage the exchange of goods and services, and support sustainable economic development. Its powers, responsibilities and governance are established by the Charter of the Bank of Mince.

The Bank publishes economic reports, monetary policy announcements, meeting minutes and research papers to promote transparency and provide players with information about the state of the economy.

Contact

Questions, proposals and concerns regarding monetary policy, taxation, financial services or the operation of the Bank may be raised with the Governor or at the relevant discussions.

Players may also raise policy proposals and motions through the public oversight mechanisms established in the Charter's governance provisions.

REFERENCE

Glossary of Economic Terms

Definitions of terms used in the Bank's publications, monetary policy announcements, financial services and economic reports.

Currency and Money

Currency: A medium of exchange used to purchase goods and services, settle debts and transfer wealth between players. Raw Beef is the official state currency under the current Charter.
Currency in Circulation: The total amount of currency currently held or used by players and businesses outside the Bank's own reserves. It measures the money available for transactions in the wider economy.
Money Supply: The total amount of money included within a defined measure of the economy.
Liquidity: The ease with which an asset can be used or converted into currency for spending. Currency is highly liquid, while assets that are difficult to sell or exchange are less liquid.
Reserves: Currency and other assets held by the Bank to support its operations, meet obligations and respond to economic disturbances. Reserves may include currency, financial claims and strategic assets.
Full Reserve Backing: The principle that the Bank's relevant monetary liabilities are backed by sufficient declared reserves.

Economic Indicators

Inflation: An increase in the general price level of goods and services over time. When prices rise, a unit of currency buys less than it did previously.
Deflation: A sustained decrease in the general price level. Deflation increases the purchasing power of currency, although it can also discourage spending if players expect prices to continue falling.
Purchasing Power: The quantity of goods and services that a unit of currency can buy. Purchasing power falls when prices rise relative to the amount of currency held.
Wealth: The value of the assets held by a player or organisation, minus any liabilities they owe. Wealth differs from income, which measures the flow of earnings received over a period.
Economic Inequality: Differences in the distribution of income, currency holdings or total wealth between players. Inequality may be measured using wealth shares, income distributions or statistical measures such as the Gini coefficient.
Gini Coefficient: A measure of inequality ranging from 0 to 1, where 0 represents perfect equality and 1 represents maximum inequality.
Velocity of Money: A measure of how frequently currency changes hands during a given period.

Taxation and Production

Tax: A compulsory payment to the state, collected according to the applicable rules. Taxes may be levied on production, income, wealth, financial returns or other specified activities.
Progressive Taxation: A tax structure in which higher levels of the taxable activity are subject to higher marginal tax rates. This reduces the tax burden on smaller producers while collecting a greater share from larger producers.
Tax-Free Allowance: The amount of eligible production or income that can be generated without incurring the relevant tax during a specified period.
Marginal Tax Rate: The tax rate applied to the next unit of taxable production or income. A 100% marginal tax rate means that each additional taxable unit is matched by an equal tax liability under the relevant rules; it does not necessarily mean that all earlier production is taxed at 100%.
Production Limit: A threshold used to regulate the amount of currency-generating production. Under the Bank's taxation framework, production above a specified soft limit may face a higher marginal tax rate, potentially reaching 100%.
Tax Revenue: Currency or other eligible assets collected by the state through taxation during a given period. Tax revenue can fund public expenditure, build reserves and support economic stabilisation.
Tax Base: The activity, income or quantity against which a tax is assessed. For example, a meat production tax may use the quantity of eligible Raw Beef produced during a week.

Banking and the Treasury

Central Bank: An institution responsible for monetary policy and the management of currency-related operations. The Bank of Mince fulfils this role within the server economy.
Treasury: The collection of currency, financial claims and other assets held by the state or Bank. Treasury resources may be used for expenditure, lending, debt repayment, stabilisation and strategic investment.
Balance Sheet: A financial statement recording an institution's assets and liabilities at a particular point in time. Assets are what the Bank owns or is owed; liabilities are what the Bank owes to others.
Assets: Resources or claims with economic value owned or controlled by a player or organisation. For the Bank, these may include currency reserves, loans receivable, bonds held and other strategic holdings.
Liabilities: Obligations owed to other parties. A Bank liability may include deposits owed to account holders or outstanding financial obligations under bonds it has issued.
Deposit: Currency placed with the Bank and recorded as belonging to an account holder. Depending on the account terms, a deposit may earn interest or be used to facilitate transfers and scheduled payments.
Public Expenditure: Spending by the state or Bank on public projects, government organisations, economic interventions, services or other authorised purposes.
Budget Surplus: A situation in which the state's income exceeds its expenditure over a defined period. A deficit occurs when expenditure exceeds income.

Bonds and Debt

Bond: A debt instrument through which an issuer borrows currency from an investor in exchange for a promise to make payments under specified terms. A bond normally states its principal, interest arrangements and maturity date.
Government Bond: A bond issued by the state or Central Bank to borrow funds. Government bonds may be used to finance expenditure, attract savings or remove currency from circulation.
Principal: The original amount borrowed or invested, excluding interest. For a bond, the principal is normally the amount repaid at maturity.
Interest: The amount paid for the use of borrowed currency or earned on an eligible financial asset. Interest is calculated according to the applicable rate, principal and period.
Interest Rate: The rate used to calculate interest on a loan, bond, deposit or other financial instrument. Rates should always be interpreted alongside their time period and payment arrangements.
Coupon: A scheduled interest payment made to the holder of a coupon bond. The coupon amount is determined by the bond's principal, coupon rate and payment schedule.
Coupon Bond: A bond that pays interest periodically throughout its term, with the principal repaid at maturity. For example, a bond may pay a fixed amount of interest every week until the original principal is returned.
Zero-Coupon Bond: A bond that makes no periodic coupon payments. Instead, the principal and accumulated interest are paid together at maturity, according to the bond's terms.
Maturity: The date on which a financial instrument reaches the end of its term. For a bond, maturity is normally when the outstanding principal becomes due for repayment.
Yield: A measure of the return earned on a financial instrument relative to its price or amount invested.
Outstanding Debt: The principal amount of debt that has been issued but not yet repaid. It may refer to the Bank's liabilities from issued bonds or to the debts owed by borrowers.

Loans and Lending

Loan: An agreement under which the Bank provides currency to a borrower, who agrees to repay the amount borrowed according to specified terms. A loan may require interest payments, principal repayments or both.
Borrower: The person, business or organisation that receives a loan and is responsible for meeting its repayment obligations.
Lender: The person or institution providing currency under a loan agreement. In a Bank-issued loan, the Bank is the lender and the recipient is the borrower.
Loan Term: The period during which a loan remains in effect, including any scheduled repayment period. The term determines when obligations must be fulfilled under the agreement.
Collateral: An asset pledged as security for a loan. If the borrower fails to meet the agreement's conditions, the lender may have rights over the collateral as specified in the applicable rules.
Secured Loan: A loan backed by collateral. The collateral provides a potential means of recovering value if the borrower defaults, subject to the loan agreement.
Limited Liability Loan: A loan whose repayment obligations are limited to the borrowing organisation and the assets specified under the agreement. Under the Bank's Charter, eligible business and government loans do not create personal liability for the owners or individuals associated with those organisations.
Default: A failure to meet an obligation under a financial agreement, such as missing a required repayment. The consequences depend on the terms of the loan or bond.

Monetary Policy

Monetary Policy: The policies and actions used by the Bank to influence monetary conditions, currency supply, borrowing, saving and economic activity. Instruments may include interest rates, taxation and other measures authorised by the Charter.
Base Interest Rate: A reference interest rate used by the Bank when setting or assessing other rates, including certain loan rates. Its precise role and value are determined by the Bank's current policy.
Economic Stabilisation: Actions intended to reduce harmful economic fluctuations, address excessive inflation or deflation, and maintain a functioning market for goods and services.
Emergency Monetary Measures: Temporary interventions authorised under the Charter during severe inflation, economic collapse or monetary instability. These measures must be proportionate to the threat they are intended to address.

Governance and Publications

Governor: The person responsible for overseeing the Bank's daily operations and implementing policy in accordance with the Charter and the current public mandate.
Public Mandate: The broad economic objectives and priorities established through public discussion, summit agreements and other recognised governance mechanisms.
Economic Summit: A meeting open to players for discussing long-term economic goals, reviewing the state of the economy and establishing or revising the public mandate.
Audit: An inspection of financial records, currency holdings, production or relevant activities to verify information, support taxation and investigate suspected fraud or undeclared reserves.
Economic Report: The Bank's regular publication describing economic conditions, monetary developments, treasury affairs, financial obligations and other relevant statistics for a defined reporting period.
Meeting Minutes: The formal written record of a meeting, documenting relevant discussions, decisions, motions and agreed actions. Minutes provide an official reference for future policy and governance decisions.
Research Paper: A publication examining a particular economic question, policy proposal or financial mechanism in greater depth. Research papers may inform future decisions but do not automatically constitute adopted Bank policy.