The Causal Loop

A causal loop is a situation where an event influences itself through a chain of cause-and-effect relationships, creating a closed cycle. Think of it as a feedback system: an initial action leads to a result that, in turn, affects the original action. For example, increased sales boost profits, allowing more investment in marketing, which then increases sales further. These loops can either reinforce growth (positive feedback) or lead to instability (negative feedback). Understanding causal loops helps identify how different factors in a system influence each other over time, highlighting the interconnectedness within complex processes.