«Domino effect: How One Economic Decision Triggers a Chain Reaction»
Starting point: Budget deficit
 Value Added Tax (VAT)
Effect #1: Prices soar → Inflation rises
Effect #2: The Central Bank comes into play
 Here it is — a chain reaction!
So what should I do?
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1. «Domino effect: How One Economic Decision Triggers a Chain Reaction»

Using the example of the news about a possible increase
in VAT in Russia.
TASS, September 21.
Shokhin: VAT increase in Russia will be provoked by
an increase in inflation and the key interest rate

2. Starting point: Budget deficit

Expenses > Income

3.  Value Added Tax (VAT)

Value Added Tax (VAT)
Indirect tax. The end user pays for it — WE
are with you.
Manufacturer -> Store -> Customer

4. Effect #1: Prices soar → Inflation rises

Manufacturers and stores are shifting the increased tax on
the price tag.

5. Effect #2: The Central Bank comes into play

The Central Bank's task is to curb inflation. The
instrument is a Key bid.

6.  Here it is — a chain reaction!

Here it is — a chain reaction!
One fiscal decision affects everyone: from the state to every citizen.
Budget deficit -> VAT increase -> Price increase (Inflation) -> Central Bank key rate increase ->
Loan appreciation -> Economic slowdown.

7. So what should I do?

Thanks for your attention!
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