What's happened is that by making cash so readily available to anyone over level 20 with a scythe, we've caused the prices on weapons and armor to be twice as high as they need to, discouraged all crafting, even potions, due to the fact cash is easier to get from Fire goblins. Player trade between individuals drops off as people no longer want to sell obtained drops when they can make 3 times the cash in the same time period they would from selling that stuff to 1 shot fire goblins, AND gain experience to boot.
I'm no programming genius or anything (in fact I'm just learning and would like to make this my first project, even if only at this deep a level to start.) , but I do know a little bit about balancing a game. I've been playing these games since the MUD days when there was no GUI. Balance is a many faceted stone, one side of which is making sure the money dropped by mobs in an area is proportionate to the levels players will interact with those mobs.
That said, I'd like to offer my services (limited though they be hehe

Edit. Just realized this sounds a little condescending. Don't think I"m saying "if we fix this, the economy will stabilize and all will be peaches and cream." I just think this is a good place to start, and it's a dialogue that needs to happen if this game is going to make a successful break from the pack of games in development, even to continue to grow and change successfully. A player driven economy driven around consumables and craftables is a vital part of any good MMO community, and I"m trying to start a dialogue about how to fix the mess that is TMW'S economy.