Virtuous Circle and Vicious Circle

Virtuous Circle And Vicious Circle

A virtuous circle and a vicious circle (also referred to as virtuous cycle and vicious cycle) are economic terms. They refer to a complex chain of events that reinforces itself through a feedback loop. A virtuous circle has favorable results, while a vicious circle has detrimental results.

Both circles are complexes of events with no tendency towards equilibrium (at least in the short run). Both systems of events have feedback loops in which each iteration of the cycle reinforces the previous one (positive feedback). These cycles will continue in the direction of their momentum until an external factor intervenes and breaks the cycle. The prefix "hyper-" is sometimes used to describe these cycles if they are extreme. The best-known example of a vicious circle is hyperinflation.

Read more about Virtuous Circle And Vicious CircleVicious Circles in The Subprime Mortgage Crisis, Other Examples

Famous quotes containing the words vicious, virtuous and/or circle:

    Still, vicious or virtuous,
    Love suits most of us.
    Philip Larkin (1922–1986)

    What a perpetual disappointment is actual society, even of the virtuous and gifted! After interviews have been compassed with long foresight, we must be tormented presently by baffled blows, by sudden, unseasonable apathies, by epilepsies of wit and of animal spirits, in the heyday of friendship and thought. Our faculties do not play us true, and both parties are relieved by solitude.
    Ralph Waldo Emerson (1803–1882)

    To love someone is to isolate him from the world, wipe out every trace of him, dispossess him of his shadow, drag him into a murderous future. It is to circle around the other like a dead star and absorb him into a black light.
    Jean Baudrillard (b. 1929)