What is the Kondratiev wave theory?

A Kondratiev Wave is a long-term economic cycle in commodity prices and other prices, believed to result from technological innovation, that produces a long period of prosperity alternating with economic decline. Kondratiev believed that these cycles involved periods of evolution and self-correction.

Who proposed the theory of K wave in economy?

Kondratiev
In the mid-1920s, Kondratiev studied Capitalist market economies and developed his K Wave Theory, which proposed that alternating cycles of rising or falling commodity prices (plotted as sinusoidal K waves) follow a set, predictable pattern in economics.

What were the four Kondratieff cycles?

A major refinement was to view the Kondratieff cycle in a four-phase schema of prosperity, recession, depression and recovery around an equilibrium path. With respect to the price long cycle, the classification of the four phases can be interpreted using modern economic terminology.

How many Kondratiev cycles or waves have there been since 1800?

Economists have empirically proven five Kondratieff cycles since the late 18th century (Illustration 1). The first long cycle was triggered by the invention of the steam engine and fundamental innovations in textile manufacturing (the fly-shuttle loom, the spinning mule, the spinning jenny).

What causes a Kondratieff wave?

A Kondratieff Wave is a long-term economic cycle, indicated by periods of evolution and self-correction, brought about by technological innovation that results in a long period of prosperity.

What is long wave theory?

It is stated that the period of a wave ranges from forty to sixty years, the cycles consist of alternating intervals of high sectoral growth and intervals of relatively slow growth. Long wave theory is not accepted by most academic economists.

What does the 6th Kondratieff cycle means?

Sixth Cycle Many economists believe that we are in a sixth Kondratieff wave that started around 2005. They primarily believe that this cycle will be fueled by advances in healthcare. Economic growth will be triggered by improved productivity in handling healthcare issues.

What causes Kondratieff waves?

What is Kondratieff winter?

It is the Winter season of the 5th Kondratieff – a depressing time of economic slow-down, entrenched social inequality, political instability and imminent ecological catastrophe.

What are the stages of the economic cycle?

The four stages of the economic cycle are also referred to as the business cycle. These four stages are expansion, peak, contraction, and trough. During the expansion phase, the economy experiences relatively rapid growth, interest rates tend to be low, production increases, and inflationary pressures build.

What are the 4 stages of economic development?