Kondratiev waves
Also called: Long waves · Topic: Economic Growth Theories and Business Cycles · NCERT: Beyond NCERT
Meaning
Kondratiev waves, also called long waves, are hypothesised long cycles in economic activity of about 40-60 years. Joseph Schumpeter's Business Cycles (1939) linked each wave to a cluster of major innovations. A new technology first drives a long boom. The boom then fades as the technology matures. The waves are still debated rather than proven.
Example
Commonly cited waves were driven by steam power, railways, electricity and information technology. Each wave lasted several decades.
Don't confuse with
- Shorter cycles: Kitchin cycles last 3-4 years and are driven by inventories. Juglar cycles last 7-11 years and are driven by fixed investment. Kuznets swings last 15-25 years and are driven by construction and demographics. Kondratiev waves are the longest.