Cyclical Asymmetry - Effects

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:

    Oh that my Pow’r to Saving were confin’d:
    Why am I forc’d, like Heav’n, against my mind,
    To make Examples of another Kind?
    Must I at length the Sword of Justice draw?
    Oh curst Effects of necessary Law!
    How ill my Fear they by my Mercy scan,
    Beware the Fury of a Patient Man.
    John Dryden (1631–1700)

    Each of us, even the lowliest and most insignificant among us, was uprooted from his innermost existence by the almost constant volcanic upheavals visited upon our European soil and, as one of countless human beings, I can’t claim any special place for myself except that, as an Austrian, a Jew, writer, humanist and pacifist, I have always been precisely in those places where the effects of the thrusts were most violent.
    Stefan Zweig (18811942)

    Consider what effects which might conceivably have practical bearings we conceive the object of our conception to have. Then our conception of these effects is the whole of our conception of the object.
    Charles Sanders Peirce (1839–1914)