A Probe into Kondratiev Waves
A Kondratiev Wave is a long-term economic cycle seen in commodity prices and various other prices, attributed to technological innovation, leading to protracted periods of prosperity followed by economic declines. This theory was introduced by the agricultural economist Nikolai D. Kondratiev, who observed significant long-term fluctuations in agricultural and industrial commodity prices. He proposed that these cycles included phases of evolution and self-correction.
Popularly known as
Related Terms: Economic Cycles, Joseph Schumpeter, Long Wave Theory, Slutsky-Yule Effect.
References
- CMT Association. “Kondratieff Wave”.
- Barnett, Vincent. “Which was the Real Kondratiev: 1925 or 1928?” Journal of the History of Economic Thought, vol. 24, no. 4, December 2002, pp. 475-478
- Vincent Barret. “Kondratiev and the Dynamics of Economic Development: Long Cycles and Industrial Growth in Historical Context”, Chapter 5: Kondratiev, Long Cycles and Economic Conjuncture. Palgrave Macmillan UK, 2016.
- Vincent Barret. “Kondratiev and the Dynamics of Economic Development: Long Cycles and Industrial Growth in Historical Context”, Chapter 8: Kondratiev in the 1930s. Palgrave Macmillan UK, 2016.
- Vincent Barret. “Kondratiev and the Dynamics of Economic Development: Long Cycles and Industrial Growth in Historical Context”, Chapter 3: Kondratiev and Economic Policy During NEP. Palgrave Macmillan UK, 2016.
- Federal Reserve Bank of Minneapolis. “The Meaning of Slutsky”.
Get ready to put your knowledge to the test with this intriguing quiz!
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## What is a Kondratiev Wave?
- [x] A long-term economic cycle based on technological innovation and lasting about 45-60 years
- [ ] A short-term business cycle occurring every few months
- [ ] A medium-term economic trend driven by fiscal policy
- [ ] A theory related to daily price fluctuations in stock markets
## Who is the Kondratiev Wave named after?
- [ ] John Maynard Keynes
- [ ] Milton Friedman
- [ ] Adam Smith
- [x] Nikolai Kondratiev
## Initially, what did Nikolai Kondratiev identify as the driver of the Kondratiev Wave?
- [ ] Government policy
- [x] Technological innovation
- [ ] Natural resource cycles
- [ ] Market speculation
## Which phase is not part of the Kondratiev Wave cycle?
- [ ] Prosperity
- [ ] Recession
- [ ] Depression
- [x] Deflation
## How long is the duration of a typical Kondratiev Wave cycle?
- [ ] 10-15 years
- [ ] 20-30 years
- [x] 45-60 years
- [ ] 75-100 years
## What is another term commonly used for Kondratiev Waves?
- [ ] Short cycles
- [ ] Kapp cycles
- [x] Long waves
- [ ] Bull markets
## During which part of the Kondratiev Wave is rapid technological change and economic growth most prevalent?
- [x] Prosperity
- [ ] Recession
- [ ] Depression
- [ ] Recovery
## In the context of Kondratiev Waves, what commonly triggers the downturn phase?
- [ ] Expansion of credit
- [x] Technological stagnation
- [ ] Increase in consumer spending
- [ ] Growth in exports
## Which sector is often considered a driving force behind Kondratiev Waves?
- [ ] Agriculture
- [ ] Entertainment
- [ ] Healthcare
- [x] Technology
## What is often the focus of policy during the downturn phase of a Kondratiev Wave to aid recovery?
- [x] Innovation and investment in new technologies
- [ ] Imposing free trade zone
- [ ] Reducing government oversight
- [ ] Increasing savings incentives
