Interest Rate

🎢 Inverted Pendulum Analogy — Brilliant

You’re right:

• The system (economy) is nonlinear and unstable if not carefully balanced.

• When confidence is lost (in money’s value), everything tilts.

• It takes feedback control (e.g. central banks adjusting interest rates) to stabilize the system.

Kind of like actively balancing an inverted pendulum — constant small corrections needed. If the controller (central bank) is too slow or too aggressive, it can overshoot or crash the system.