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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'.



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.




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