>>10996391Flooding of any kind permanently halts a market. This isn't something you can fix, because the effect is sorely and truly permanent. In the absence of any other irreversible process, the progress that the economy makes is irreversible. When a civilization collapses, some fragment of knowledge is always left behind that changes the analogous genetic coding of all future civilizations. Since not even collapse can result in a true reversible economy, we have to assume that everything traded once, is lost forever. Money is like blood for civilization, so anything else—including economic actors—will necessarily have to act analogously to some other tissue type. Trade goes on, because it is always useful in agrarian societies, making it the single most archeological activity we can measure.
In reality, yes; your economic model would be flawless. Rather than civilization slowly corrupting from political influence and the shifting seat of glory, becoming subtly parasitic in ways that only oppress "the people who would have already been going to have been oppressed" in the process, the market would naturally move away from your governing interior space at a truly organic pace. It would certainly be the least "violent" collapse of any government since the beginning of time. Yes, by leveraging the inherent value of trade, you would create the most successful "type" of government humanity would ever know.
It would also be the single least great thing humanity had ever accomplished.