Market fluctuations can be destabilizing from "summary" of The General Theory of Employment, Interest, and Money by John Maynard Keynes
In the economic sphere, the forces of supply and demand are constantly at play, determining the prices of goods and services in the market. These fluctuations in prices can have far-reaching effects, not only on individual businesses but on the economy as a whole. When markets are subject to extreme volatility, it can lead to a destabilizing effect that ripples through the entire economic system. Market fluctuations can create uncertainty among consumers and businesses, causing them to be hesitant in their spending and investment decisions. This uncertainty can lead to a decrease in aggregate demand, as consumers and businesses hold back on their purchases and investments. As a result, businesses may need to cut back on production, leading to lower levels of employment and income ...
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