A perpetual boom bust cycle? Sounds healthy.
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.
This is exactly how real world economy is (ideally) meant to work.
Regression to the mean. The alternative is no adjustment at all.
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.