Define: Kondratiev Wave

Business, Legal & Accounting Glossary

Definition: Kondratiev Wave



Advertisement



Full Definition of Kondratiev Wave


Russian economist Nikolai Kondratiev theorized that capitalist economies move in a large cycle he called a Kondratiev wave. Each Kondratiev Wave lasts 50 to 60 years. A Kondratiev wave consists of a period of strong growth followed by slowing growth. Kondratiev wave theory is based on 19th-century price data that also included wages, interest rates and raw material prices. A Kondratiev wave begins with a rising upwave when prices are increasing and the economy is expanding. The upwave ends when rising inflation triggers a recession. Eventually, prices stabilize and growth resumes for another decade but at a less robust pace. This downcycle of the Kondratiev wave begins with a market crash that results in prolonged economic depression. Proponents of Kondratiev wave theory note it successfully predicted the 1929 stock market crash based on the 1870 crash. The Kondratiev wave is also referred to as the Kondratiev cycle.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/kondratiev-wave/
Modern Language Association (MLA):
Kondratiev Wave. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 05, 2020 https://payrollheaven.com/define/kondratiev-wave/.
Chicago Manual of Style (CMS):
Kondratiev Wave. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/kondratiev-wave/ (accessed: April 05, 2020).
American Psychological Association (APA):
Kondratiev Wave. PayrollHeaven.com. Retrieved April 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/kondratiev-wave/

Definition Sources


Definitions for Kondratiev Wave are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th February, 2020