1--- 2meta: 3 date: false 4 reading_time: false 5title: "Knock-on Effect" 6date: 2023-10-05 7description: "The idea that one action or event has secondary or indirect consequences in economics." 8tags: ["Economics", "Systematic Effects", "Equilibrium"] 9--- 10 11## Background 12 13The knock-on effect refers to the concept whereby an initial action results in a series of events or reactions, producing secondary or indirect consequences. In the context of economics, it underscores the interconnectedness of economic agents and how a change in one aspect of the economy can trigger wider repercussions.