[expedition32]

A perpetual boom bust cycle? Sounds healthy.

[fooker]

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]

It is a negative feedback loop, so yes, it makes systems stable.

[WJW]

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]

This is exactly how real world economy is (ideally) meant to work.

[AlOwain]

Regression to the mean. The alternative is no adjustment at all.