Economy of Ransenar

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Economy of the Kingdom of Ransenar
Currency:	Ransenari erb (R€)
GDP:	R€ 333.7 billion (1679)
GDP by Sector:	Agriculture: 10.8% Industry: 38.6% Services: 50.6%
Unemployment Rate:	5.8% (1679)
Industries:	List industries here.
Major Industry (% of GDP):	MajorIndustry (TBC %)
Largest Company (Value):	LARGEST (TBC $)
Labor Force (% of Total Population):	TBC (TBC %)
Fiscal Year:	Anno Nortone
Budget:	R€79.265 billion 1679 AN, (XX% of GDP)
Budget Surplus or Deficit:	▲ +R€0.54 billion
Inflation Rate:	1.197% (1679)
Public Debt:	R€241.4 billion 1679 AN, (XX% of GDP)
Exports:	Exports
Export Partners:	UGB, Alduria, Shireroth, Elwynn, Natopia, Sanama, Constancia, Wechua Nation.
Imports:	Imports
Import Partners:	Shireroth, UGB, Alduria, Natopia, Constancia, Sanama, Craitland, Wechua Nation.
Reserves of Foreign Currency:	R€4.412 billion (1679)

The economy of the Kingdom of Ransenar is primarily focused on services into high-tech, life sciences, financial services, and agribusiness including agrifood. Ransenar is a largely open economy and ranks high on foreign direct investment (FDI) flows, mainly thanks to its access to the Raspur Pact markets and a close trade relationship with Alduria.

Following a period of continuous growth at an annual level from 1673-1679, the post-1679 Ransenari economic crisis severely affected the economy, compounding domestic economic problems related to the collapse of the Ransenari agribusiness bubble and a steep reduction in Aldurian agribusiness exports.

Foreign-owned multinationals continue to contribute significantly to Ransenar's economy, making up 14 of the top 20 Ransenari firms, employing 23% of the private sector labor-force and paying 67% of corporation tax collected.

History

Since independence

Goldshirian Tiger (1673-1679)

The "Goldshirian Tiger" is a term referring to the economy of Ransenar from the year 1673 to the year 1679, a period of rapid real economic growth mainly fuelled by foreign direct investment and large government infrastructure programs. The boom was severely dampened by a subsequent agribusiness bubble (fueled by UGB and Aldurian exports) and a property bubble which resulted in a severe economic downturn starting in 1679.

At its founding, Ransenar was poor country by most standards, with high poverty, unemployment, inflation, and relatively low growth. It did inherit sizeable infrastructure works from the massive infrastructure investments during the days of King Ryker. Capital investment programs, large infrastructure projects, defense spending, and foreign direct investment drove a quick expansion at an average rate of 10.6% between 1673 and 1679 when it fell into recession. Its rapid growth has been described as a rare example, with its success attributed to its membership in the Raspur Pact, the export of livestock and grain commodities, as well as through heavy RP and Aldurian investment.

Economic crisis (1679-1682)

The economy underwent a dramatic reversal between 1679 and 1682. It was hit hard by low economic confidence brought on by the Second Amokolian War and ensuring international crises. A chronic economic crisis triggered by a large contraction of foreign direct investment, with GDP contracting by 14% and unemployment levels rising to 16% by mid-1680. The high Aldurian demand for Ransenari agriproducts contracted steeply as Alduria acquired West Baatharz, triggering mass layoffs and bankruptcies in the agriculture business. An economic price bubble in which real estate and stock market prices were greatly inflated burst. The bubble was characterized by a rapid acceleration of asset prices and overheated economic activity.

The preceding economic period was fueled heavily by subprime borrowing as regulations instituted by the government to pacify smaller parties in the Congress pushed this segment out of the fringe and into mainstream lending. A relaxing of credit lending standards by investment banks, rural credit cooperatives, and commercial banks drove this about-face. However, it's not like subprime lending became magically less risky by the regulations placed, it just simply became more acceptable to accept this risk. During a period of tough competition between mortgage lenders for revenue and market share, and when the supply of creditworthy borrowers was limited, mortgage lenders relaxed underwriting standards and originated riskier mortgages and business loans to less creditworthy borrowers.

Between 1675 and 1679, the price of the typical Ransenari farm increased by 289%. With Ransenari local food demand more than adequately met, foreign markets like Alduria, the UGB, and Constancia made farming and food processing a hugely lucrative industry in Ransenar. This real estate bubble resulted in many farmers, corporate or family-owned, refinancing their properties at lower interest rates or financing consumer spending by taking out second mortgages secured by the price appreciation. This opened the door to many predatory lending practices, referring specifically to the practice of unscrupulous lenders that enticed borrowers to enter into "unsafe" or "unsound" secured loans for inappropriate purposes. Former employees from the Grand Market Financial Corporation described a system in which they were pushed to falsify mortgage documents and then sell the mortgages to banks eager to make fast profits. There is growing evidence that such mortgage frauds may have further contributed to the crisis. Mortgage risks were underestimated by almost all institutions in the chain from originator to investor by underweighting the possibility of falling housing prices.

Declining productivity and a high fixed exchange rate between the Ransenari erb and foreign currencies to avoid public turmoil were also other key reasons that led to the crisis. The economic reconstruction of Elsenar following Ransenari reunification stepped up during this period, feeding the fiscal deficit as the recession required large amounts of public funding which turned some areas into temporary boom regions, mainly around the cities of Wendor, Zolt, and Aurum.

A decline in tourism as a result of foot and mouth disease in 1680 further depressed economic growth in Ransenar, triggering further losses in agribusiness. Confirmed by the Minister of Health and Sanitation in mid-1680, on farmland located near Airle. All livestock in the vicinity were culled, followed with a nationwide ban on the movement of all cattle and pigs, with a 3-km (1.9-mi) protection zone placed around the outbreak sites and the nearby virus research and vaccine production establishments, together with a 10-km (6.2-mi) increased surveillance zone. These outbreaks caused a cull of all at-risk animals in the area, including some of the largest farms in Ransenar. These outbreaks also caused the closure of hunting parks across the country to contain deer; remaining closed for three months. Response units from the Ransenari armed forces, the Minister of Health and Sanitation and the National Health Administration quickly enforced the measures, which led to the full eradication of the virus. The quick response by the Ransenari government and successive bills delivering aid to farmers and agribusiness earned public praise from leading agribusiness interests and farmer's interest groups.

Stabilization and recovery (1682-1685)

The recession that began in 1679 AN ended in late 1682 AN, according to the Ransenari Organization for Public Economic Research. The Bank of Ransenar as well as the government in Goldfield responded with fiscal policy and monetary policy initiatives to stimulate the economy and reduce financial system risks. However, as the economy continued to recover, it was clear that the distribution of household incomes became more unequal during the post-1683 AN economic recovery.

Taxation and welfare

Taxation in the Kingdom of Ransenar in 1679 AN come from:

• Personal Income taxes (40% of tax revenues);
• Consumption taxes, being VAT (27% of tax revenues);
• Excise and Customs duties (12% of tax revenues);
• Corporation taxes (16% of tax revenues) represents most of the balance (up to 95% of tax revenues).

Ransenar's Corporate Tax System is a central part of Ransenar's economic model. Ransenar emphasizes high corporate tax rates as the most harmful types of taxes where economic growth is the objective. The balance of Ransenar's taxes is covered by Property taxes (<3% of tax revenue, being Stamp duty and local property taxes) and Capital taxes (<3% of tax revenue, being capital gains tax and capital activity tax).

Welfare benefits

The King of Goldshire Fund

Beginning 1688, in accordance with previous contractual agreements with the deceased King of Goldshire, 1,006,169,140.38 Natopos were delivered by the ESB Foundation to the Government of the Kingdom of Ransenar, under the strict proviso that these funds be utilized "for the social ameloriation of the historic territory of the Kingdom of Goldshire", in such manner as the Government of the Kingdom of Ransenar saw fit. This was allocated accordingly by the Minister of Social Solidarity and National Welfare.

For 1689, 1,986,369,361.74 Natopos was delivered by the ESB Foundation to the credit of the National Health Administration (Ransenar).

For 1690, 2,653,866,349.36 Natopos was delivered by the ESB Foundation to the credit of the Ministry of Education and Technology, which allocated the same into a School Facilities Building Fund.

For 1691, 1,488,667,064.31 Natopos was delivered by the ESB Foundation to the credit of the National Social Security Fund.

For 1692, 1,469,869,880.89 Natopos was delivered by the ESB Foundation to the credit of the Ministry of Education and Technology, which allocated the same into a Public and Community Libraries Fund.

For 1693, 1,843,154,885.21 Natopos was delivered by the ESB Foundation to the credit of the Ministry of Education and Technology, which allocated the same into a Public and Community Technology Fund.

For 1694, 1,869,794,898.96 Natopos was delivered by the ESB Foundation to the credit of the Ministry of Transportation and Communications, which allocated the same into an Active Mobility Fund.

For 1695, 1,492,304.33 Natopos was delivered by the ESB Foundation to the credit of the Ministry of Social Solidarity and National Welfare, which allocated the same into a Disabilities Relief Fund.

For 1696, 1,396,622,312.27 Natopos was delivered by the ESB Foundation to the Royal Postal Saving Bank of Ransenar, to the credit of the Ransenar Refugee Council, of which 396,622,312.27 was made immediately available for use, with the 1 billion Natopos as a trust fund to earn interest.

For 1697, 1,117,297,849.82 Natopos was delivered by the ESB Foundation to the credit of the Ministry of Social Solidarity and National Welfare, which allocated the same into a Food Aid Fund.

For 1698, 837,973,387.36 Natopos was delivered by the ESB Foundation to the credit of the Ministry of Public Works and Construction, which allocated the same into a Social Housing Fund.

For 1699, 720,657,113.13 Natopos was delivered by the ESB Foundation to the credit of the Ministry of Education and Technology, which allocated the same into a Scholarship Fund.

For 1700, 288,262,845.25 Natopos was delivered by the ESB Foundation to the credit of the Minister of Health and Sanitation, which allocated the same into a Rural Medical Facilities Augmentation Fund.

Currency

The currency of the Kingdom of Ransenar is the Ransenari Erb, with the symbol R€. The Natopian Natopo is also legal tender for all payments within the territory of the Kingdom of Ransenar.

One Ransenari Erb is subdivided into 100 Sovereigns (Srs). Coins are struck for the following denominations of Sovereigns: 1 Sovereign, 5 Sovereigns, 10 Sovereigns, 25 Sovereigns, and 50 Sovereigns.

Bank of Ransenar

The Bank of Ransenar was created by virtue of Ransenari Royal Decree IV, the fourth royal decree issued by the Queen of Ransenar, bearing date at Palace of Termarth in Goldfield, Ransenar.on 25.IX.1673 AN. its primary objectives are to promote financial stability, to guide sound banking operations, to maintain the stability of the internal and external value of the currency, and to foster economic development within the scope of the above objectives.

The Bank of Ransenar is governed by a Board of Directors consisting of as many directors as may be nominated by the Lord High Steward and appointed by the Queen, while the Lord Governor of the Bank of Ransenar, the Minister of Economy and Finance, and the Minister of Foreign Affairs serve as ex officio directors. Except for ex officio directors, the directors are appointed for a term of three AN years, and may be reappointed upon the expiration of such term.

The Bank of Ransenar has its Head Office in the city of Goldfield and may establish branch offices in all regions of the Kingdom of Ransenar, as well as in foreign nations. The establishment and abolishment of its branch offices are authorized by resolution of the Board of Directors and reported to the Lord High Steward and the Minister of Economy and Finance for joint approval.

Royal Mint of Ransenar

The Royal Mint was created by virtue of Ransenari Royal Decree IV, the fourth royal decree issued by the Queen of Ransenar, bearing date at Palace of Termarth in Goldfield, Ransenar.on 25.IX.1673 AN.