Economics of Spice and Wolf

Holo and Lawrence meet the mysterious merchant Zheren, who offers to sell information on a silver coin that is set to rise in purity. The proposal sells information for a percentage of profits but has no insurance from lose other than then a return of the initial information cost. Although the information sold is the invers of reality and the Trenni silver coin is set to decrees in purity.

By partnering with the 

The second volume of Spice and Wolf, delves into the concept of margin buying; a financial strategy where borrowed funds are used to acquire assets. This plot development serves as an illustration of the inherent risks associated with such financial maneuvers. Market condition for this story are as follows:

• 1 Gold Lumion exchanges for 32 5/6 Silver Trenni

• The Church has canceled its campaign drooping the Poroson arms market -96.6667%.

• Poroson's import tax is 10% 

• Lawrence's principle for his pepper is 1,000 Trenni

Lawrence and Holo plan to capitalize on the increased demand and price for pepper driven by the approaching winter. Lawrence, a savvy merchant, identifies an economic opportunity beyond the pepper trade. He contemplates purchasing armor in Poroson, anticipating that he can sell it at a premium in Ruvinheigen, a town known for its robust arms market.

In Poroson the pepper's valuation is 50 Lumion (1641 2/3 Trenni), a 64.16% appreciation. Using 1:2 margin Lawrence exchanges the pepper for 20 armor sets (5 Lumion each). 10 sets are bought with the pepper and another 10 sets are bought on credit.

In Poroson, Lawrence encounters an import tax, leading him to surrender two sets of armor. The 18 sets were sold for 3 Lumion, a 96.6667% depreciation. Having not enough to cover his margin loan, Lawrence finds himself owing 47 Lumion.

The issue of this debt is worsened when it is sold to a company in Ruvinheigen who then call the loan seeking immediate repayment.