Neuman has created his model to verify the theoretical existence of balance. The assumptions of the model give an explanation to the existence of the cycles. They derive from two peculiarities of the model, which Neumann concludes from the operation of the market. The first peculiarity is that balance comes about in the so-called saddlepoint. It is characterized by maximum production and minimum profit. The second is crossregulation, where excess profit stimulates growth, whereas oversupply decreases prices.