Do you agree with the following statement? Resource production follows a sigmoid curve, while capital growth follows an exponential curve.

[Mexicano]

Resource production follows a sigmoid curve (in the best case scenario for renewable resources) or a bell shaped curve (non-renewable resources) , while capital growth follows an exponential curve.
This discrepancy is one of the causes of inflation and asset bubbles and the booms and busts of the economic cycle.

 

[Magnus]

What do I get, if I agree?

 

[Mexicano]

What do I get, if I agree?

Economic insight: now you know why financial assets ( and capital) tend to rise faster than the economy. The bubble will continue as long as the government supports monetary expansion through a low-interest rate and an expansionary budget.

 

[luiza]

Resource production does not follow a sigmoid curve. Each resource is probably a basic function of demand which itself will be the result of many factors and circumstances . And capital growth most certainly is not bound to be exponential . Any relation of either or both to inflation bears all the signs of gobbledygook.imho

 

[Mexicano]

Resource production does not follow a sigmoid curve. Each resource is probably a basic function of demand which itself will be the result of many factors and circumstances . And capital growth most certainly is not bound to be exponential . Any relation of either or both to inflation bears all the signs of gobbledygook.imho

Duly noted. I corrected the statement with an "at best" for renewable resources. Finite resources will follow a bell-shaped curve.
Well, on aggregate terms the credit curve is exponential until the credit bubble bursts. On the micro level, any individual fixed interest investment will yield an exponential curve.

 

[1srelluc]

Resource production does not follow a sigmoid curve. Each resource is probably a basic function of demand which itself will be the result of many factors and circumstances . And capital growth most certainly is not bound to be exponential . Any relation of either or both to inflation bears all the signs of gobbledygook.imho

 

[sparky]

Resource production follows a sigmoid curve (in the best case scenario for renewable resources) or a bell shaped curve (non-renewable resources) , while capital growth follows an exponential curve.
This discrepancy is one of the causes of inflation and asset bubbles and the booms and busts of the economic cycle.

IRRC, it used to be the laffer curve , but all one needs know is supply vs. demand side economics are both raft with the fact that one will never isolate from the other....~S~

 

[Stormy Daniels]

Do you have a point to make?

 

[The Sage of Main Street]

Resource production follows a sigmoid curve (in the best case scenario for renewable resources) or a bell shaped curve (non-renewable resources) , while capital growth follows an exponential curve.
This discrepancy is one of the causes of inflation and asset bubbles and the booms and busts of the economic cycle.

A Peek Behind "Peak Oil"

There aren't any "non-renewable" resources, except by the design and propaganda of the Zero-Growth Gurus who monopolize the present supply. There's as much hidden oil as there is water in all the oceans.

 

[Mexicano]

Do you have a point to make?

The OP was very clear
"This discrepancy is one of the causes of inflation and asset bubbles and the booms and busts of the economic cycle."

 

[Stormy Daniels]

The OP was very clear
"This discrepancy is one of the causes of inflation and asset bubbles and the booms and busts of the economic cycle."

So.....no, you don't have a point to make.