If cosmophysical periods influence the climate, changes in crop yields, epidemic disasters, and creative productivity, it is difficult to imagine that these rhythms would not be reflected in the economy. The economic cycles discussed in modern literature on the dynamics of economic indicators are well-known space (natural) periods. It was through the study of variations in economic indicators that it was first understood that the dynamics of such a complex system are not described by a single cycle or rhythm, but by a set of cycles, i.e., a spectrum.
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Data on Economic Conditions ("Kondratiev waves") versus Solar Activity (SA) shows that the turning points of
economic fluctuations are closely aligned with some maximums of the Wolf number. The dates of SA maxima
and minima prior to 1749 were reconstructed from indirect historical and geophysical data.
The spectrum of economic cycles exhibits a number of peaks, with the most significant periods being: 3.5, 5.5, 8.0, 11.0, 18.0, 20–22, and 54 years. Short periods (e.g., the 3.5 year Kitchin cycle) can have certain regional characteristics. On the other hand, long economic cycles must apply to the entire global economy. These include the long "Kondratiev waves" (54 years), named after the prominent Russian economist Nikolai Kondratiev (1892–1938). The graph above shows data on economic conditions ("Kondratiev waves") versus solar activity (SA). The turning points of economic fluctuations closely align with some maximums of the Wolf number. The dates of solar activity maxima and minima prior to 1749 were reconstructed from indirect historical and geophysical data.
Updated December 2, 2024.
The "Kondratiev waves" have been clearly traced in the world economic system since the early eighteenth century, appearing in many indicators simultaneously—such as industrial production, wholesale prices, and the number of innovations in industry and agriculture. Although the parameters of these fluctuations change slightly, reflecting evolutionary changes in the world economy, the cyclical nature persists to the present day. There are various theories about the origin and nature of these fluctuations, which indicates that the issue remains unresolved. In this book, we are primarily concerned with the possible connection between the "Kondratiev waves" and solar activity and ecology. In other words, the question arises: Is there synchronism between the peaks of the "Kondratiev waves" and the cosmophysical parameters?
» On average, the difference between the peaks and troughs of solar activity and economic cycles does not exceed six months. «
88% of recessions since the 1800s and 100% of major financial crises occurred during the downturn of sunspot cycles.
The answer is illustrated in the first graph above. It shows the positions of the extreme points of the long "Kondratiev waves"—their maxima and minima (peaks and dips). These points are determined by analyzing a large dataset characterizing the state of the world economy since the end of the seventeenth century. In this analysis, we considered the results obtained by representatives of various economic schools, each using their own independent economic indicators (indices). The turning points in the trends of the global economy are marked with arrows, and circles indicate the positions of the solar activity (SA) maxima. Dark circles represent those SA maxima located near the extreme points of the "Kondratiev waves," while light circles represent the others.
As shown in the first graph, in only two cases out of 11, the difference between the dates of the black circles (SA) and the dates of the economic peaks and troughs is 3 years. On average, the difference does not exceed half a year. Thus, changes in the world economy are clearly associated with variations in solar activity: when trends in the development of the world economy change, they are almost certain to occur at the maximum of the solar cycle. The pendulum of the economy swings in sync with solar fluctuations. Whether economic oscillations with a half-century period are self-oscillations or exogenous rhythms is secondary. It is evident that the world rhythm is introduced into the economy by Nature.
IZMIRAN (ИЗМИРАН – Institute of Radioastronomy and Applied Physics) is an institute within the
Russian Academy of Sciences (Российская академия наук), located near Moscow.
The average 11-year sunspot cycle can vary in length, ranging from eight to fourteen years. This cycle occurs due to the Sun’s magnetic poles flipping—north becomes south and vice versa—approximately every 11 years. About 11 years later, the poles reverse again, making the full solar cycle actually a 22-year phenomenon.
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