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by dimitar 5301 days ago
Negative feedback in markets often brings stability to a dynamical system and there is reason that there are negative feedback loops in markets.

A popular model of a negative feedback relationship in markets is called the 'Demand curve'.

2 comments

There is also positive feedback in markets due to irrational exuberance and herd behaviour.
Can this still be said when we're considering the economy of a whole country, or the whole world?
Both. Trade exists across invisible lines, even when the owners of the invisible lines forcibly try to prevent them.