4 ms·
A perpetual boom bust cycle? Sounds healthy.
by expedition32 7mo ago
A perpetual boom bust cycle? Sounds healthy.
- AlOwain 7mo agoRegression to the mean. The alternative is no adjustment at all.
- igsomething 7mo agoIt is a negative feedback loop, so yes, it makes systems stable.
- WJW 7mo agoTechnically you could have negative feedback result in a system that diverges further and further from some baseline, until it eventually collapses. This is usually because the gain of the feedback signal is too high.
- fooker 7mo agoCounterintuitively that’s the definition of healthy in economics. If you don’t have busts, at some point your system will abruptly/violently cease to exist.
- raincole 7mo agoThis is exactly how real world economy is (ideally) meant to work.