← Back to context Comment by expedition32 19 hours ago A perpetual boom bust cycle? Sounds healthy. 5 comments expedition32 Reply fooker 18 hours ago Counterintuitively 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. igsomething 19 hours ago It is a negative feedback loop, so yes, it makes systems stable. WJW 14 hours ago Technically 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. raincole 18 hours ago This is exactly how real world economy is (ideally) meant to work. AlOwain 19 hours ago Regression to the mean. The alternative is no adjustment at all.
fooker 18 hours ago Counterintuitively 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.
igsomething 19 hours ago It is a negative feedback loop, so yes, it makes systems stable. WJW 14 hours ago Technically 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.
WJW 14 hours ago Technically 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.
Counterintuitively 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.
It is a negative feedback loop, so yes, it makes systems stable.
Technically 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.
This is exactly how real world economy is (ideally) meant to work.
Regression to the mean. The alternative is no adjustment at all.