Feedback loops cause changes in a future state based on a past state

It is crucial to remember that there are always delays in responding to changes. Feedback loops will react only after certain time and with respect to a past state. If the incoming changes are slight outdated, the resulting reaction will be too.

That is one of the flaws in economic models that assume that a change in price will instantaneously be faced with a change in demand. The market takes time to react to a change in price.

Not only slow reaction times tamper with a system, a balancing feedback can produce oscillations if its reaction time is too short.