Home > Term: self correcting
self correcting
A problem that cures itself if allowed to do so. Thus, for example, a payments imbalance can cause its own elimination through the specie flow mechanism. Likewise, a recession will, eventually, be eliminated by the deflation that it causes.
- Part of Speech: noun
- Industry/Domain: Economy
- Category: International economics
- Company: University of Michigan
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Creator
- Noroc
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