"Financial bubbles, crises and the role of government in unleashing golden ages"


2012. "Financial bubbles, crises and the role of government in unleashing golden ages"

FINNOV WP-2-12. Forthcoming in Pyka, A. and Burghof, H.P. (eds.) (2012) Innovation and Finance. London: Routledge
                      

Abstract:

This article holds that the recent financial collapse belongs to a family of major boom and bust episodes associated with the way in which successive technological revolutions are assimilated by the economy and society. This understanding would move policy thinking away from trying to regulate against further bubbles and, instead, towards actively shaping market conditions to enable the full flourishing of the newly installed technological potential into what can be a sustainable global golden age. Such an objective would also guide the necessary changes in taxation and the financial system in order to make real economy investment more profitable than casino finance. The article briefly describes the recurring historical pattern, discusses the nature of what can be seen as the recent double bubble collapse and examines the elements of a possible global golden age combining universal ICT, "green" growth and full global development.

Table of Contents:

  • The recurring pattern and its causes
  • The process that leads to the major technology bubble
  • The double bubble at the turn of the Century
  • From Installation to Deployment
  • A global sustainable golden age ahead?
Publications
 

"TECHNOLOGICAL REVOLUTIONS AND FINANCIAL CAPITAL:The Dynamics of Bubbles and Golden Ages"

Published 2002

...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

More about "TECHNOLOGICAL REVOLUTIONS AND FINANCIAL CAPITAL:The Dynamics of Bubbles and Golden Ages"

Technological Revolutions Financial bubbles Installation Period Frenzy Deployment Period Golden Ages Dual strategy Techno‑economic paradigms Neo‑Schumpeterian Respecialization Synergy Turning Point Future markets Knowledge society Green growth Maturity Full global development Globalization Sustainability Socio‑economic development Paradigm shifts Irruption Market hyper‑segmentation