Unleashing a golden age after the financial collapse: Drawing lessons from history
The current crisis is not a “black swan” but a recurrent historical event midway along the successive technological revolutions. In contrast with other crises, the ones that follow the major technology bubbles install a vast innovation potential that can be unleashed with adequate government policies. The so-called Golden Ages in the past two centuries (the Victorian boom, the Belle Époque, the post war golden age) have followed post-bubble recessions. After governments save the banks and jump-start the economy, they need to regulate and reorient finance towards the real economy while fostering synergistic growth in agreed directions. The article holds that the possibility is there for unleashing a golden age – national and global – by tilting the playing field in favor of “green growth”. The question is whether the conditions for government to become proactive again are as favorable as after WWII.
Financial bubbles, golden ages, great surges, green growth, industrial policy, techno-economic paradigms, technological revolutions
...the book fills an important gap in the literature on business cycles and innovations. I most strongly commend it to all those attempting to understand the past and future evolution of technology and the economy.'
Christopher Freeman, Emeritus Professor, SPRU,
University of Sussex, UK
'...Carlota Perez shows us that historically technological revolutions arrive with remarkable regularity, and that economies react to them in predictable phases. Her argument provides much needed perspective not just on history, but on our own times. And especially on our own information revolution.'
W. Brian Arthur, Santa Fe Institute, New Mexico