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Stability will beget over-confidence which will bring exuberance. If the system feeds on its own information it might be impossible to stabilize. And do you ev
by DenisM 2y ago
Stability will beget over-confidence which will bring exuberance. If the system feeds on its own information it might be impossible to stabilize.
And do you even want stability? The boom cycle produces exuberance that allows funding risky projects of which a small number become smashing success. The bust destroys the rest of risky project, which allows recycling of labor and resources. Arguably this is a better model for economic advancement, compared to a steady state where stagnating businesses continue to stagnate, hoarding resources in under-productive pursuits.