Leastways that is the only explanation I have for the hyperinflation being reported in Diablo III (courtesy of TAGN). In many respects this is not surprising – game designers are not economists, and even when they hire economists they do not always listen. However, even CCP has not managed something quite as horrendous as what appears to be going on in Diablo. From what I have read I do not attribute any malicious motives to the Blizzard team. Incompetency seems a perfectly adequate explanation.
Anyway, it is a very interesting article, and I thoroughly recommend reading it.