Its deflation when your income sky-rockets out of proportion, which is what happened after the Christmas event, prior to Christmas no one had free access to basically more 3x buffs than they can economically use, therefore you can easily create a clear 12,500 gc per day clear profit running coinages, buy up tons of lootspots, sell mountains of loot and granite (which is worth at least 2.5x more than it was prior to Christmas)
The game reflects the amount of skill and effort you put into your economy, it's harsher for the casual player than before Christmas, but also the rewards are higher up until you need level 5 buildings it's fairly easy, then it gets harder.
I mentioned Island of the Pirates earlier, nice easy adventure for casual player's, doable with 2 tavern generals and no blocking (577R 33LB 190C) now if the best loot drops on this you can clear close to 4k gc on Northisle so it's not so bad for new players / casual players at all.