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Reinforcing Causal Loop

The document describes a reinforcing causal loop caused by the global financial crisis. The crisis led to a rise in unemployment and demand for jobs as businesses struggled. This increased the need for capital and riskier bank loans, fueling further financial instability and crisis. The loop reinforces itself through the interconnected effects of unemployment, capital needs, lending practices, and global economic downturns.

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Mark Billy Espinosa
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884 views1 page

Reinforcing Causal Loop

The document describes a reinforcing causal loop caused by the global financial crisis. The crisis led to a rise in unemployment and demand for jobs as businesses struggled. This increased the need for capital and riskier bank loans, fueling further financial instability and crisis. The loop reinforces itself through the interconnected effects of unemployment, capital needs, lending practices, and global economic downturns.

Uploaded by

Mark Billy Espinosa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Salva, Jan Philippe B.

BSAT – 4C
REINFORCING CAUSAL LOOP

Global financial
crisis
Great Recession, downfall of
monetary value

High-risk bank Unemployment


loans rate
Loan of money from Lack of resources to
other country supply wages

Increase in need High demand for


of capital jobs
To sustain Businesses take
businesses advantage of the
situation

 The more global financial crisis Notes:


 The more unemployment rate
 The more high demand for jobs There is no negative relationship.
 The more increase in need of capital The causal loop is reinforcing.
 The more high-risk bank loans
 The more global financial crisis

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