Indeed, Newton’s laws of motion, that for every action there is an equal an opposite reaction, can be equally well applied to the world of economics. A trend or event that pushes the economic pendulum to one side is usually corrected by a counter action, which can be brought about by means of countercyclical policies, or merely through the self-correcting nature of markets.
However, while these booms and busts can be fascinating to analyse with the benefit of hindsight, they make the lives of policy makers considerably more difficult.