Economic Analysis of Westeros - I scoured the five pages of the book to find clues about the financial situation in the 7 kingdoms.

1st of all, the Iron throne needs to get its finances in order. The crown has been spending on accumulating debt. Unfortunately, none of this spending has been invested in long-term growth. The thrones spend on lavish parties and jousting competitions and has ongoing expenses due the war of the five kings.

In Book 1. Ned starves as the mad king left the treasury flowing with gold, and the little finger has managed to increase revenue tenfold during his time as master of coin. Yet somehow, the crown is over six million golden dragons in debt. It is 3 million dragons in the Lannisters, 2 million to the Iron Bank of Bra Avo's, the most powerful bank in the known world, and another million to the church of the seven. The crown size will income barely cover the interest on its debt and seriously has already suspended the payments to the bank. The church seems to me the Lannisters are gonna need a new model based on the unsustainable debt dynamics of the Iron Throne. It seems the probability of the fault is high, which means the Iron bank is no doubt getting restless, but the Tom on the throne or rather wants to keep in there is gonna have to seriously keep fighting for it which is going to be expensive. Since more debt isn't an option, the throne has increased taxes. The crown imposed to tax on the tens of thousands fleeing to the king's landing. Taiwan even ________ the tax on the ruffles. The other option is printing money which is difficult with the commodity-based currency, but there is some speculation based on the few pointed lines in books 2 and 3 that little finger was printing more coins by deluding the amount of golden age. Though this _____ could be attributed to little fingers' incredible business acumen, there are two sides to every golden dragon coin, that doesn't so bad if the economy is growing but isn't any good news here. Government spending can sometimes lead to growth if the golden spent on infrastructure, capital investment, and public goods. But that was not the case. The iron is thrown into massive death, throwing parties and fighting a civil war. The Westeros economy is based on Agriculture and has little by way of international trade. The people of Westeros report they saw which has been last and last lately. Ever since the mountain ravage the river lands. Farmers have fled, filled to burn an equipment has been destroyed, and the further lands of the rich have been caught up from king's landing and not to mention winter is coming, and the most of us are too young to remember last winter. I think it's safe to say it will make farming extremely difficult. So, all signs put into financial instability and negative economic growth. We have already seen food prices increase in king's landing.

With winter has expectations with even less supply. Food prices will continue to rise. However, expect the price of services to fall. Unemployment is high; I suspect the supply of prostitutes is on the rise, and discretionary spending has evaporated from most of the kingdom, which means the price of some companionship will go down. There is only one positive I can see coming out of this mess. It's that house of Lannister's likely to lose most of the 12th in power. The Iron Bank of Bra Avo's is known for getting its due. They simply write off the debt of the Iron Throne. They will step in and support someone else to take over the throne, provided super promises to honor the outstanding debt. This is doubly bad for the Lannister; not only will they lose control of the throne if the throne owes the Lannister millions of golden dragons. A debt that is unlikely to be honored if someone else takes the throne by force. So at least something good will come out of the impending crisis of Westeros House Lannister will be hit harder than anyone, which will make winter a little warmer for the rest of us.

1.What is the state of the economy of the Iron Throne?What can be done given a budget deficit?

2.What is the kingdom's response to the economic crisis? What is the result?What do you think are the expected further economic repercussions given the state of the kingdom's peace and security?