See my Basic Economics, third edition, pages 40-48.
Herbert Stein and Joseph Stiglitz.
“For the past 20 years or more its economy has managed an enviable combination of steady growth and low inflation.” “The Turning Point,” The Economist, September 22, 2007, p. 35.
There is another sense in which multiple stages must be taken into account, which may be easier to explain by analogy. Imagine that a dam can be emptied into a valley and that calculations show that this would fill the valley with water to a depth of 20 feet. If your home is located on an elevation 30 feet above the valley floor, it should be safe if the water is slowly released. But if the floodgates are simply flung wide open, a wave of water 40 feet high may roar across ...