Good Micro, Bad Macro: Fiscal Belt-Tightening Simulator

Municipal-level austerity vs national aggregate demand dynamics & the paradox of thrift

D3.js Circular-Flow Engine

Circular-Flow & Feedback Dynamics Multiplier: 1.42x

Contraction Flow
Expansionary Stimulus
Tax Base Feedback
Macro Paradox: Microeconomic savings wiped out by macroeconomic tax base erosion and demand contraction.

Policy Levers & Macro Shock Setup

Municipal Spending Cut (%): 18%
Infrastructure Project Delays (%): 25%
Household Consumption Drag (%): 12%
Central Stimulus / Fiscal Transfer (%): 0%
Aggregate Demand Impact
-2.8%
Tax Receipts Lost
-14.6%
Net Debt-to-GDP Δ
+3.9%
Effective Multiplier
1.42x
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