I have a digital control system which is described by the transfer function
$$ Y(z) = \frac{-\beta}{z - 1 + k \beta} X(z) $$
where \$\beta\$ is a real parameter I can adjust to modify the characteristics of the system, and \$k\$ is a positive real constant.
Using the BIBO stability criteria that the poles must be inside the unit circle, this means that for BIBO stability I need $$ 0 < k \beta < 2 $$ which is exactly what I observe when \$x[n]\$ is an impulse response: $$ x[n] = \begin{cases}0 & n < 0\\ x_0 & n \ge 0\end{cases} $$
However, I am trying to design my system to handle "arbitrary" inputs. For example, in the above example suppose I have an input which jumps between two values: $$x[n] = \begin{cases} x_0 & n~\text{is even}\\ -x_0 & n~\text{is odd} \end{cases} $$ The z-transform for this particular input is $$ X(z) = x_0 \frac{1 - \frac{\cos(\pi)}{z}}{1 - \frac{2 \cos(\pi)}{z} + \frac{1}{z^2}} = x_0 \frac{z (z + 1)}{z^2 + 2 z + 1} $$
If I try to simulate the system with this input, for \$k \beta > 1\$, \$y[n]\$ actually tends towards \$\pm \infty\$ (oscillating), which I would consider unstable, or at the very least unacceptable.
How would I go about analyzing (and designing) a control system when I have to consider other possible input responses than just the basic impulse response? Are there any useful search terms I could use for solving this type of problem?