second-round effect

English

Noun

second-round effect (plural second-round effects)

  1. (economics) The situation where inflation starts to have an indirect impact, affecting wages and prices.
    • 2024 November 3, Will Hutton, “Investment drives growth. That’s why gloomy forecasters are so wrong about the budget”, in The Guardian‎[1]:
      There is a second-round effect of crowding in higher private investment as public sector contractors tool up to meet the public contracts, and then a third – as all firms adjust to the higher level of demand by raising business investment levels – of more crowding in and so-called “multiplier effects”.
This article is issued from Wiktionary. The text is available under Creative Commons Attribution-Share Alike 4.0 unless otherwise noted. Additional terms may apply for the media files.