How would a fantasy economy work in a world with magic?

How would a fantasy economy work in a world with magic?

In a fantasy economy, magic can serve as a resource, influencing trade, labor, and currency. For example, if magic can create food, it might reduce the need for agriculture.

What kind of currency would exist in such an economy?

Currency could be based on magical artifacts, rare ingredients, or even spells. For instance, a powerful spell might be worth more than gold.

How would magic affect job markets?

Magic could create new job sectors, like spell crafting or potion brewing, while diminishing traditional roles like farming or blacksmithing.

Are there any risks associated with a magic-based economy?

Yes, risks include over-reliance on magic, potential for magical inflation, and the possibility of magical disasters affecting resources.

Can you give examples of fantasy worlds with unique economies?

Sure! Worlds like 'The Wheel of Time' have economies influenced by magic, while 'Dungeons & Dragons' features various magical items as trade goods.