I don't always post on the forums, but when I do, I prefer to say something useful...
Inflation: Rise in the general level of prices of goods and services in an economy.
PLEX: Pilot's License EXtention. Adds 30 days of gametime to an active EVE account. Can be exchanged for AUR.You
13 PLEX for $200
When: LIMITED TIME ONLY!!!1!!(TM)
Where: New Eden
The Q4 2010 QEN
focuses on inflation and its relation to ISK faucets/sinks. It is correct in saying that an increase in money supply will lead to inflation. What it fails to say, however, is that the increase in money supply has to be RELATIVE to the goods available. You can have a constant, never increasing money supply, but if the amount of goods diminishes, inflation will occur regardless. This is the type of inflation that CCP is risking by injecting massive amounts of PLEX into the market with the bulk discount deal.
Mass injections of PLEX will drive their price down, causing miners/missioners who grind for PLEX each month to have a lower goal to achieve. Once reaching the goal of buying that month's PLEX, they will likely move on to more engaging areas of gameplay and stop producing either through salvage/loot or mining ore directly. A reduction in materials available to producers will lead to increased prices and that price will work its way up through the producers to the consumer. The "counter" to this inflation is the expected use of the PLEX in microtransactions through the NEX store. This essentially creates a massive ISK sink where ~350m ISK at a time is flushed from the money supply in exchange for 3.5k AUR. It is this writer's opinion, however, that the EVE community will not flush ISK for AUR in quantities sufficent to offset the inflation produced by the reduced amount of goods available. It is clear that the intense negative reaction to the NEX (warranted or not) will prevent it from becoming a prominant ISK sink.