Technological revolutions and financial capital: Micro Review
Just finished this very insightful book(Technological Revolutions and Financial Capital by Carlota Perez) on the macro perspective on linking technology and finance. Carlota studies 5 technological revolutions from the last 2 centuries to describe how such revolutions leads to “New Economy” and the phases and mechanics of the same. Her perspective on financial capital and its relationship to production capital provided great context on the macro issues of today’s economic challenges and the relationship between innovation (and actually disruption) and investment.
Fair bit of warning. It’s really dense and I had to separately google certain concepts before I got back to the text at hand.
This also seemed very relevant in context of the situation we are in today. The current situation could trigger what she describes “the turning point” and result in the end of eye-popping tech valuations (what she describes as “the frenzy phase”) and result in productive growth and investment (the synergy phase).
It could also be a start of another revolution since we are being severely disrupted which could lead to a cluster of innovations and new opportunities that leads to a “New Economy”.
#transformation #change #macroeconomics #financialmarkets #innovation
