Reference #328: Thinking in Systems

A reinforcing feedback loop is characterised by amplifying and self-multiplying behaviour, creating a vicious or virtuous cycle. It generates more input to a stock the more of that stock there is (and less input the less there is).

An example of a reinforcing feedback loop is the system of wages and prices. The more prices go up, the more wages must go up for people to maintain their standards of living. The more wages go up, the more prices must go up for companies to maintain profits.

Meadows. Thinking in Systems, 2008. (30-31)

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