Effects
Cyclical asymmetry is a form of nonlinear economics and, as such, its effects can be widely varied. However, the primary identification of a cyclical asymmetry is that resources, results, or actions taken to correct a change result in an unequal distribution of a resource or factor, which always leads to a disruption.
In economics, particularly with fiscal policy, poorly chosen compensating actions can result in multiple CAs, spiralling out of control into depression. The Great Depression could be construed as a result of cyclical asymmetry carried to ridiculous extremes, with most economic and fiscal policy bent to the ideal of mass speculation and investment over rational investment on assets.
Read more about this topic: Cyclical Asymmetry
Famous quotes containing the word effects:
“Let us learn to live coarsely, dress plainly, and lie hard. The least habit of dominion over the palate has certain good effects not easily estimated.”
—Ralph Waldo Emerson (1803–1882)
“The best road to correct reasoning is by physical science; the way to trace effects to causes is through physical science; the only corrective, therefore, of superstition is physical science.”
—Frances Wright (1795–1852)
“Upon the whole, necessity is something, that exists in the mind, not in objects; nor is it possible for us ever to form the most distant idea of it, consider’d as a quality in bodies. Either we have no idea of necessity, or necessity is nothing but that determination of thought to pass from cause to effects and effects to causes, according to their experienc’d union.”
—David Hume (1711–1776)