  Network theory is rapidly changing our understanding of complex systems, but
the relevance of topological features for the dynamic behavior of metabolic
networks, food webs, production systems, information networks, or cascade
failures of power grids remains to be explored. Based on a simple model of
supply networks, we offer an interpretation of instabilities and oscillations
observed in biological, ecological, economic, and engineering systems. We find
that most supply networks display damped oscillations, even when their units -
and linear chains of these units - behave in a non-oscillatory way. Moreover,
networks of damped oscillators tend to produce growing oscillations. This
surprising behavior offers, for example, a new interpretation of business
cycles and of oscillating or pulsating processes. The network structure of
material flows itself turns out to be a source of instability, and cyclical
variations are an inherent feature of decentralized adjustments.
