Characteristics of The Cycle
Kondratiev identified three phases in the cycle: expansion, stagnation, recession. More common today is the division into four periods with a turning point (collapse) between the first and second phases. Writing in the 1920s, Kondratiev proposed to apply the theory to the 19th century:
- 1790–1849 with a turning point in 1815.
- 1850–1896 with a turning point in 1873.
- Kondratiev supposed that, in 1896, a new cycle had started.
The long cycle supposedly affects all sectors of an economy. Kondratiev focused on prices and interest rates, seeing the ascendant phase as characterized by an increase in prices and low interest rates, while the other phase consists of a decrease in prices and high interest rates. Subsequent analysis concentrated on output.
Read more about this topic: Kondratiev Wave
Famous quotes containing the words characteristics of the, characteristics of and/or cycle:
“One of the characteristics of the dream is that nothing surprises us in it. With no regret, we agree to live in it with strangers, completely cut off from our habits and friends.”
—Jean Cocteau (1889–1963)
“One of the characteristics of the dream is that nothing surprises us in it. With no regret, we agree to live in it with strangers, completely cut off from our habits and friends.”
—Jean Cocteau (1889–1963)
“The lifelong process of caregiving, is the ultimate link between caregivers of all ages. You and I are not just in a phase we will outgrow. This is life—birth, death, and everything in between.... The care continuum is the cycle of life turning full circle in each of our lives. And what we learn when we spoon-feed our babies will echo in our ears as we feed our parents. The point is not to be done. The point is to be ready to do again.”
—Paula C. Lowe (20th century)