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Journal section "Socio-economic development strategy"

The Genesis and Mechanisms to Overcome Systemic Economic Crises

Shcherbakov G.A.

2 (44), 2016

Shcherbakov G.A. The Genesis and Mechanisms to Overcome Systemic Economic Crises. Economic and Social Changes: Facts, Trends, Forecast, 2016, no. 2 (44), pp. 48-60. DOI: 10.15838/esc.2016.2.44.3

DOI: 10.15838/esc.2016.2.44.3

Abstract   |   Authors   |   References
The paper aims to look into the origin and nature of global economic crises, the least studied phenomena of the global economic life – the phenomena, the nature of which still has not received a generally accepted explanation in economic science. Market economy has its own laws, the spontaneous nature of which is revealed in times of crises. However, the analysis of global “crisis experience” draws attention to an important feature in the implementation of various forms of crises that remains at all the stages of economic development. Some economic shocks, despite their urgency and scale, gradually give way to recovery and then – to complete recovery. Other end up with weak revival and depression, gradually turning into a new recession. Such crises, depressions, and periods of sluggish economic recovery form the “waves of crisis development” that hold the economy in a depressed condition for a long time. The impact and the consequences of these “waves” of economic shocks that are sequential or overlapping in time go beyond the medium-term economic dynamics. They occur within a long-term (Kondratiev) cycle and coincide with its descending phase, when, according to empirically confirmed ideas of the great Russian economist Nikolai Kondratiev, the economy is undergoing a difficult stage of the crisis-depression development that shapes the parameters of future economic growth. The present paper unites the economic events of this stage in the concept of “systemic economic crisis”. This concept is introduced for the purpose of structuring in the single economic process the diverse phenomena occurring at the downward phase of the long-term cycle. Each of them may be due to special causes and have a separate history, but initially, all these events are subordinated to the decision of general systemic problems, and for this reason can be considered as part of the single systemic crisis, the overcoming of which provides the rise of the society to qualitatively new frontiers of economic development. The present paper is an attempt to understand the causes and consequences of systemic economic crises as a fundamental phenomenon of the long-term economic cycle

Keywords

economic development, long-term economic cycle, recession, depression, systemic economic crisis, systemic problem, innovative upgrading, economic modernization

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