In earlier versions I seem to recall being able to do ads that talk you up. Either way, I'm just giving ideas
Oh, you meant Tropico 1, I completely forgot how that one looked like :) Do you remember maybe if this was better than the system in Topico 3 & 4?
Overall, I can think of 3 aspects of propaganda (I'm not sure all of them are worth implementing):
1) Coverage - how many people are exposed to propaganda (like not all can read so newspaper alone can't give 100% coverage, not all have radio, etc)
2) Efficiency - how effective the propaganda is vs those exposed to it (some skills systems? level of journalists? charisma of the dictator?)
3) Goal - the purpose of propaganda, it could be positive (to make people love and respect the dictator) or negative (to make people not believe those pesky protesting students or dismiss the rumours that we used army to suppress strikers)
I think, for the sake of gameplay, the population of the country should be somewhat gullible, so if you have the coverage, it's enough, they will believe you. But also there must be some hard die rebels that will never believe you and always plot ot get rid of you.
It depends on how complex a system you're looking to develop. It could be a simple conversion rate of one currency (money) to another (loyalty). If you do it this way, you'll probably want
No, I don't think money should be involved, at least not directly. I was thinking more like, you have limited propaganda capablities (which you can increase to some extend) and you decide how to use. But I'm not sure how exactly that could work :)