>Even if we assume less than half
>the influx gets into the local economy it will double the amount of
>silver there. So yes, it becomes easier for the Sartarites to pay
>the taxes in 1611 but it also means that local goods will cost
>twice as much in silver - so the cow becomes worth 40 lunars. This
>is just in one year - 100% inflation.
It doesn't because you've neglected the effects of the velocity of money (i.e. how often money travels from one transaction to the next). However this forum isn't the place for economics roleplaying, so I forebear from explaining why in detail.
--Peter Metcalfe
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