Vicious circle
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A vicious circle (or cycle) is a complex
When the results are not detrimental but beneficial, the term virtuous cycle is used instead.
Examples
Vicious circles in the subprime mortgage crisis
The contemporary
The foreclosures reduce the cash flowing into banks and the value of mortgage-backed securities (MBS) widely held by banks. Banks incur losses and require additional funds, also called "recapitalization". If banks are not capitalized sufficiently to lend, economic activity slows and unemployment increases, which further increase the number of foreclosures. Economist Nouriel Roubini discussed vicious circles in the housing and financial markets in interviews with Charlie Rose in September and October 2008.[3][4][5]
Designing ecological virtuous circles
By involving all stakeholders in managing ecological areas, a virtuous circle can be created where improved ecology encourages the actions that maintain and improve the area.[6]
Other
Other examples include the
See also
References
- ISBN 9780203089163. Retrieved 19 March 2012.
- ^ Feldstein, Martin (18 November 2008). "How to Help People Whose Home Values Are Underwater". Opinion. The Wall Street Journal. Retrieved 2013-09-05.
- ^ "Roubini & Panel". Charlie Rose. Retrieved 2013-09-05.
- ^ "Rose & Roubini Discussion". Charlierose.com. Archived from the original on 2013-04-01. Retrieved 2013-09-05.
- ^ "Rose & Roubini". Charlierose.com. Retrieved 2013-09-05.
- .
- ^ "Covid: WHO says it is very worried about Europe surge". BBC News. November 20, 2021.
General and cited references
- Schlesinger, L.; Heskett, J. (1991). "Breaking the cycle of failure in services". Sloan Management Review. 31: 17–28.
- Rational Choice with Passion:Virtue in a Model of Rational Addiction – In this link the author uses Aristotelian virtue as a mediator between passion and reason in the construction of utility/consumption functions in an esoteric part of consumer behaviour theory related to decision making in addictive situations.
- China: A Stabilizing or Deflationary Influence in East Asia? The Problem of Conflicted Virtue – In this paper the author is using virtue in the sense of a positive outcome (balance of payments surplus) that conflicts with long term regional growth and stability.
External links
- Media related to Vicious circles at Wikimedia Commons
- Media related to Virtuous circles at Wikimedia Commons
- The dictionary definition of vicious circle at Wiktionary
- The dictionary definition of virtuous circle at Wiktionary