Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages is an academic book by Carlota Perez that seeks to describe the. Technological Revolutions and Financial Capital has ratings and 27 reviews. Carlota Perez draws upon Schumpeter’s theories of the clustering of. Technological Revolutions and Financial Capital presents a novel interpretation of the Carlota Perez draws upon Schumpeter’s theories of the clustering of.

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The book ends with Perez asking whether the consequences of the current economic system — with its irruption and frenzy, which end up in a bubble and collapse — can be mitigated. The first half on the phases are technologicxl most useful. Within years the market became so saturated that they no longer produced them: As the revolution becomes the new prevailing paradigm, it favors compatible innovations and it excludes incompatible innovations.

While the contributing innovations have often gestated for a while, a revolution needs a highly visible attractor to appear, symbolizing the new potential and cinancial the imagination of pioneers. Refer to Phase 0 above. Asset bubbles may burst.

Facilitate risk taking derivatives, hedge funds E Refinance obligations or mobilize assets Reschedule debts Brady Bonds, swaps. Financial capital represents the agents who possess wealth in the form of money or relatively liquid assets. Finally, given the time lag of diffusion of the technology, the core countries in the revolution may be experiencing trouble at the same time that catching-up cteountries are reaching their maximum height.

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The book provided an incredible framew A must read for anyone interested in the intersection of markets and technology. The Dynamics qnd Bubbles and There is an intense funding of innovation in new technologies.

The companies begin to operate in a two paradigm mode, earning profits through their core industry while investing capital elsewhere.

Legal loopholes fiscal havens Making money from money, taking advantage of incomplete information FX arbitrage, leads and lags Making money without money pyramid schemes, insider trading. Perez provided a descriptive model of previous technological revolutions and in particular how they interacted with financial and production capital. Their objective is to make money from money, and they perform actions that are most likely to increase their wealth.

A quite brilliant synthesis of Kondratiev’s theory of long capitalist “waves” with Schumpeter’s theory of creative destruction, connected through the role of the finance industry in moving capital from stodgy fading industries into dynamic but risk ones.

Tech revolutions lead to paradigm shifts, which result in inclusion-exclusion mechanisms. A promising way to look at how capitalism goes through alternating phases of increasing inequality and widespread prosperity. This is probably the best book I’ve ever read on technology and its impacts on society.

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Book review of “Technological Revolutions and Financial Capital”

Characterizing the surge of a technological revolution can be divided into four main phases with a turning point at the center of these phases: Every half century capitalism produces a chain of events that repeat themselves time and time again.

The role of financial capitals – capitao, stock markets etc – is analysed in depth in the book, depicting in a very coherent manner how at times financial agents are treated as the main force behind the growth, yet at other time – as “evil genius”.


Carlota Perez provides an overarching framework that maps out different phases and helps to understand a lot of the complex period we are living.

These findings are illustrated with examples from the past two centuries: The book has, however, several notable failings. Aug 31, Rohit Gattani rated it it was amazing.

Book Summary: Technological Revolutions, by Carlota Perez | Allen Cheng

With enough discrepancy in wealth, as noted, political unrest boils over. Third, and as a consequence of the first two, Perez is largely blind to the role of political and economic geography.

New industries are established, and the construction of new infrastructure begins. Carlota Perez draws upon Schumpeter’s theories of the clustering of innovations All that said, this book is hard as shit to read. The new wealth that accumulates at one end is often more than counterbalanced by the poverty that spreads at the other end. Each of these can appear as separate revolutions rather than interdependent systems under a wider umbrella — each smaller system benefits from the previous one, while also reinforcing it.

Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages

The irrationally exuberant bubble bursts, causing a recession and social unrest. Thanks for telling us about the problem. From Wikipedia, the free encyclopedia.