Virtuous Circle And Vicious Circle
A virtuous circle and a vicious circle (also referred to as virtuous cycle and vicious cycle) are economic terms. They refer to a complex chain of events that reinforces itself through a feedback loop. A virtuous circle has favorable results, while a vicious circle has detrimental results.
Both circles are complexes of events with no tendency towards equilibrium (at least in the short run). Both systems of events have feedback loops in which each iteration of the cycle reinforces the previous one (positive feedback). These cycles will continue in the direction of their momentum until an external factor intervenes and breaks the cycle. The prefix "hyper-" is sometimes used to describe these cycles if they are extreme. The best-known example of a vicious circle is hyperinflation.
Read more about Virtuous Circle And Vicious Circle: Vicious Circles in The Subprime Mortgage Crisis, Other Examples
Famous quotes containing the words virtuous, circle and/or vicious:
“We can only write well about our sins because it is too difficult to recall a virtuous act or even whether it was the result of good or evil motives.”
—Edward Dahlberg (1900–1977)
“Everything here below beneath the sun is subject to continual change; and perhaps there is nothing which can be called more inconstant than opinion, which turns round in an everlasting circle like the wheel of fortune. He who reaps praise today is overwhelmed with biting censure tomorrow; today we trample under foot the man who tomorrow will be raised far above us.”
—E.T.A.W. (Ernst Theodor Amadeus Wilhelm)
“All married couples should learn the art of battle as they should learn the art of making love. Good battle is objective and honest—never vicious or cruel. Good battle is healthy and constructive, and brings to a marriage the principle of equal partnership.”
—Ann Landers (b. 1918)