Why would that be a good thing? The environment is a chaotic dynamic system. There are massive non-linearities, phase shifts, etc, and yes, massive damping fee

Why would that be a good thing? The environment is a chaotic dynamic system. There are massive non-linearities, phase shifts, etc, and yes, massive damping feedback loops as well. Don't forget the 2nd order, 3rd order, and 4th order effects. You could build an economic system which did not have periodic crashes, it just would have to be very limited in scope (by keeping it in a highly controlled and isolated environment) and would thus only have one crash, when the containing vehicle breaks apart. A one-off is not periodic.