Keyword: positive feedback

Leveraging and Deleveraging (5/13/2010)

The leverage cycle could amplify business cycles apart from routine monetary policies via interest rates.

Keywords: ABS, asset-backed securities, CDO, collateralized debt obligation, deleverage, equity, interest rates, Leverage, leverage cycle, margin call, positive feedback

The Snowball Effect (11/9/2001)

Knowledge-based industries subject to increasing returns because of high R&D fixed costs and low variable costs naturally tend to monopolize the market.

Keywords: Adam Smith, avalanche, diminishing returns, fixed cost, increasing returns, lock in effect, marginal cost, natural monopoly, negative feedback, network externality, operating system, positive feedback, R&D, snowball effect, software