User:DeficitSpender/Sandbox5: Difference between revisions
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==GDP==
[[File:TNO Economy GDP.png|right|link=]]
The {{color|palegreen|Gross Domestic Product}}, or {{color|palegreen|GDP}}, mechanic includes two functions, the main
Three sub-notions are included in this. The first one, '''Surplus''', happens when the nation's revenue is higher than its expenditures. Its effects are that it makes '''Inflation''' go up and '''GDP growth''' go down. The second one, '''Deficit''', happens when the nation spends more than what it has. This greatly affects a nation's economy by weakening '''Inflation''' and investing in '''GDP growth''', however, it also fills it's '''debt''' and, in the long term, could put it in '''Financial Crisis'''. Finally, the third one, '''Reserves''', which fills up after some focuses or when the national budget is in '''Surplus'''.
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==Debt==
[[File:TNO Economy National Debt.png|right|link=]]
The {{color|lightcoral|National Debt}} is another mechanic of the Economy in TNO. It has a ceiling determined by one's [[Credit Rating|credit rating]]. It reduces when the budget is in
==={{icon|usdblue}} Reserves===
The {{color|dodgerblue|National Reserves}} gives the player some extra versatility in the economy, such as through {{color|yellow|paying off their}} {{color|lightcoral|debts}} {{color|yellow|or}} {{color|palegreen|investing}} {{color|yellow|it}}. Reserves are gained through National Focuses, Events or by having a
==Budget==
==={{icon|usdred}}
[[File:TNO Economy Budget Deficit.png|right|link=]]
{{color|lightcoral|Expenditure}} is divided into 4 sub-spendings:
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* Debt servicing, the money that goes into repaying the interests on debt owed
* Other costs, all things that are miscellaneous
==={{icon|usdgreen}}
[[File:TNO Economy Budget Surplus.png|right|link=]]
{{color|palegreen|Revenue}} is also divided into 4 sub-revenues:
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* Other revenue, all money that comes from other sources.
==={{icon|gdp}}
==={{icon|power}}
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|Activates when {{color|lightcoral|Inflation}} is above {{color|yellow|10%}}
|Activates when {{color|lightcoral|Deficit}} is more than {{color|yellow|10%}} the national GDP
|Activates when {{color|lightcoral|National Debt}} is more than the national {{color|
|Activates when {{color|dodgerblue|National Reserves}} is more than {{color|yellow|10%}} of national GDP
|-
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Should the economy enter a downward spiral, usually caused by high deficit and national debt, a {{color|lightcoral|Fiscal Crisis}} will trigger. A {{color|lightcoral|fiscal crisis}} will affect the economy in various ways, through a reduction of {{icon|gdpgrowth}}{{color|palegreen|Nominal GDP Growth}}, {{icon|stability}}{{color|yellow|Stability}}, {{icon|warsupport}}{{color|yellow|War Support}}, {{icon|politicalpower}}{{color|yellow|Political Power}}, army capabilites and factory output.
===[[File:TNO Economy Warning FISCAL CRISIS.png|left|link=]]{{color|lightcoral|FISCAL CRISIS}}===▼
A fiscal crisis is the answer of the wider economic world when a country's spending agenda is perceived as too reckless to be even remotely sustainable. While sometimes caused by world-wide geo-political or geo-economic factors, some of which may be entirely out of the country's possibility to influence or protect against, the end result is the same: privates refuse to fuel public spending via acquisition of public bonds, deeming them excessively risky to buy, even at high interest rates, and as such, the country suddenly finds itself unable to pay for even the most basic services such as the armed forces, law enforcement and strategic infrastructure.
The longer a fiscal crisis persists, the worse its effects become for the country's economy, as public services collapse, industries shut down and banks are subjected to heavy pressure by panicked investors and desperate families trying to salvage their meagre savings. Eventually, not even the government itself is safe from fiscal crises: no matter how harsh the repression, or persuasive the propaganda, soon the people will demand swift action - and woe betide the leader who fails to address it...
▲===[[File:TNO Economy Warning FISCAL CRISIS.png|left|link=]]{{color|lightcoral|FISCAL CRISIS}}===
In order to recover, a decision category will be unlocked, allowing the player to take several decisions to combat the {{color|lightcoral|fiscal crisis}}. Recovering the economy is no easy feat however and will not be without sacrifices. Only one {{color|yellow|Decision}} can be taken at a time, additionally the {{color|yellow|Negotiate A Debt Repayment Plan With Our Overlord}} Decision requires being part of an [[Spheres|economic sphere]].
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{{color|yellow|Credit Rating Progress}} goes from {{color|yellow|0}} to {{color|yellow|100}}, if it hits 0 it will {{color|lightcoral|Downgrade}} and if it hits 100 it will {{color|palegreen|Upgrade}}. There are three factors that affect credit rating progress, {{color|yellow|Deficit-to-GDP}}, {{color|yellow|Debt-to-GDP}} and whether the country is at {{color|palegreen|peace}} or {{color|lightcoral|not}}. The Progress is updated at the end of each month.
'''Credit Rating Progress Factors:'''
Should {{color|yellow|Deficit-to-GDP}} be {{icon|arrowdowngreen}}{{color|palegreen|below}} real GDP growth, {{color|palegreen|+2}} will be added to the {{color|yellow|progress}} each month.<br>
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