Predator-Prey #economics
▻https://hackernoon.com/predator-prey-economics-2b2c0272d472?source=rss----3a8144eabfe3---4
If Predator-Prey Economics existed formally as a field of study, it would address human economic interactions from the perspective of Resource Competition Dynamics. In fact, Richard Goodwin used Predator-Prey dynamics in 1967 to model the growth cycle, and as shown next, its use is quite intuitive. For instance, in the case of Debt vs Capital, it is clear that the former must feed on the latter to survive. Also evident is that if interest from Debt accrues at a greater Internal Rate of Return (IRR) than that of the income accrued from Capital, the “Predator-Prey” ratio between them will produce an unstable feedback system. This is precisely the outcome that Hyman Minsky predicted in his 1985 Financial Instability Hypothesis, as has been confirmed every decade since then, by the (...)