Technological Shift and the Rise of a New Finance System. The Market-pendulum Model
The purpose During globalization, huge new demand causes resource shortages
and inflation. This gives a boost to new technologies, potentially able to resolve them. Any
radically new technology is decades away from commercialization its implementation after
a Systemic Sudden Stop (3S) depends on finding a brand-new Accumulation Engine (AE).
Meanwhile, efforts to reduce production costs through scale efficiencies reverse the supplydemand
equation: from shortages of supplies to shortages of demand. Our market-pendulummodel
shows that the mid-term market equilibrium ends with market failures (3S).
Historically, generation of adequate demand for drastically new products took at least a few
decades, causing a seismic shift: i.e. mass steel/oil/electricity of the early 20th century came to
age after WWII only.
Lucy BADALIAN, Victor KRIVOROTOV
Market-Pendulum Model, Globalization, Supply-Demand, Monetization, Market Equilibrium, 3S.