second-round effect
noun1
Economics, Sciences The situation where inflation starts to have an indirect impact, affecting wages and prices.
- 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”.2024 November 3, Will Hutton, “Investment drives growth. That’s why gloomy forecasters are so wrong about the budget”, in The Guardian: