What is a Spending Chain?

A Spending Chain refers to the sequence of financial transactions that occur as money flows through an economy or organization. It highlights how funds are spent, reallocated, and reinvested, illustrating the interconnectedness of various economic activities. Each link in the chain represents a different entity or sector that contributes to the overall economy, showing how initial spending can lead to subsequent rounds of expenditure and impact. This concept is often used to analyze economic impact and resource distribution.