Technological Revolutions and Financial Capital - WikipediaThe resulting concepts are then applied to the current Blockchain bubble. I conclude with recommendations. In this section I will very briefly summarize the relevant concepts I am synthesizing. Included in each section is a video or videos featuring the authors which I believe to be illuminating, as well as links for further reading. Some say we are in the second technological revolution.
PDF Download: Technological Revolutions and Financial Capital, by Carlota Perez
Jump to navigation. A broad-sweep "think piece" in the Schumpeterian spirit, this book discusses the relationship between major technological innovations and financial booms and busts. Perez applies a four-phase dynamic sequence -- innovation, frenzy, synergy, and maturity -- to five significant innovations: textile production in the s, steam and railways in the s, steel and electricity in the s, automobiles and oil in the s, and information and telecommunications in the s. Each innovation took two to three decades to complete those four phases, including a period of frenetic investment culminating in a financial bust. The transitions entailed significant social and economic transformation not only in financial innovation but in law, regulatory framework, corporate structure and governance, and public expectations. The provocative thesis links some but not all financial crises directly to the euphoria generated by new technological innovations, leading to expectations of higher-than-normal returns, followed by financial innovation, dissipation of traditional caution, and exploitation of enthusiastic investors by unscrupulous businessmen and investment bankers. According to Perez, it is about time to enter the synergistic "golden age" of the revolution in information technology.
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The Dynamics of Bubbles and Golden Ages. Carlota Perez. Edward Elgar, Cheltenham, UK, Yet apparently no one has stopped to question Schumpeter's treatment of the clustering of 'wildcat or reckless banking', dismissing it as a random and unnecessary phenomenon to be excluded from his model, together with speculative manias. Keeping Schumpeter's basic assumptions about innovations based on credit creation as the force behind capitalist dynamics, this chapter will present an alternative model of the process of propagation of technological revolutions. On that basis it will propose:.
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Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages is an academic book by Carlota Perez that seeks to describe the connection between technological development and financial bubbles as seen in the emergence of long term technology trends. The book identifies five bursts of technological innovation that have occurred in industrial history. Carlota Perez has found that these cycles of technological revolutions are coupled with financial cycles. Each cycle, which may take 50 - 60 years, consists of the following four phases:  . Irruption phase: There is an intense funding of innovation in new technologies. Clusters of new revolutionary inventions appear. New industries are established, and the construction of new infrastructure begins.