The Kondratieff Curve

Question 1

The Kondratieff Curve

Answer 1

• long wave cycle (50 - 60 years)
• experienced by capitalist economies
• caused by technological innovation that results in a long period of prosperity

Question 2

Sub-Cycles

Answer 2

• based on seasons
• Spring:
  increase in productivity and inflation
  —> Boom
• Summer:
  increase in general wealth, changing attitude towards work
• Autumn:
  stagnating economic conditions give rise to a deflationary growth spiral
  —> Recession

-Winter: —> Depression