Kondratiev Wave: What it Means, How it Works
A Kondratiev Wave is a long-term economic cycle in commodity prices and other prices. It is believed to result from technological innovation and produces a long period of prosperity alternating with economic decline. The theory was founded by Nikolai D. Kondratiev, an agricultural economist who noticed agricultural and industrial commodity prices experienced long-term cycles. Kondratiev's research into the pricing of agricultural commodities led him to investigate historical prices of wheat and other crops in major European grain markets where price records had been maintained. While some later economists have taken interest in Kondratiev’s theory, it is not generally accepted by economists, and the existence of Kondratiev Waves is not universally acknowledged.
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