Kondratiev Wave


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Kondratiev Wave

A theory stating that capitalist economies go through phases much longer than ordinary business cycles. That is, capitalist economies have cycles of 45-60 years, where they perform alternately well and then poorly. The cycle then starts over. For example, the Second Industrial Revolution lasted from approximately 1850 to 1900; the global economy performed well in the first half of the cycle and was characterized by depression in the second half. Kondratiev wave theory was proposed by a Soviet economist and is more popular in Marxist circles than outside of them. See also: Kremlinomics.
References in periodicals archive ?
The Kondratiev Wave had its last crash phase in 1929/30.
This emphasis on 45 to 60 year Kondratiev business cycles have been criticized by some for not explaining the origins of the cycle, or Kondratiev waves as being simply economic correlations rather than a cause of economic growth or depression (Solomou, 2004).
The first three Kondratiev waves were (roughly) 1795-1848, 1848-1895 and 1895-1945.
Schumpeter placed great emphasis on the role of Kondratiev waves in explaining the expansion of businesses through innovation.