WORLD ECONOMIC CONJUNCTURE 13 1 These rates have undergone a downward revision in more recent studies. 2 See C F Pratten, "Mrs. Thatcher's Economic Experiment", Lloyds Bank Review, January 1982. 3 R Frisch and H Hoime, "The Characteristic Solutions of a Mixed DilYerence and Differential Equation occurring in Economic Dynamics", Econometrica, Vol 3, 1935. 4 See E Mandel, Der Spatkapitalismus, Frankfurt am Main, Suhrkamp Veriag (English edition, London, NLB, 1976). See also W W Ro^tow, " A Simple Model of the Kondratidf Cycle", in Why the Poor get Rkher and tfie Rich Slow Down, London, Macmillan, 1910, and J W Forrester, "Business Structure, Economic Cycles and National Policy", Futures, 1976, pp 195-214. 5 See J A Schumpetcr, Business Cycles, New York, McGraw Hill, 2 volumes, 1939. Reference is to KondraticfTs work which was published in a German summary. See, "Die Langen Wellen der Konjunktur", Archiv fur ^oziallwi-sienschaft und sozial politik, vol. 56, 1926, pp 573-609. An abridged English translation by W T Slolpcr was published in the Review of Economics and Statistics, vol. 17, 1935, pp 105-115. 6 "Springinvloed Beschouwirgcn over mdustrieUe outwik keling en prijsbcwe-ging", DeNienwe Tijd, 1913, pp 253-273, 369-384, 445-464. 7 Simon S. Kuznets, Secular Movements in Production and Prices, Boston, Houghton Mifflin Co, the Riverside Press, 1930, p261. See, for a recent review of van Gelderen's work, E Mandel, Late Capitalism, London. NLB, 1976. See also Jan Tinbergen, "Kondratlev Cycles and so-called Long Waves", Futures, August 1981, pp 258-263. 8 S de Wolff, "Prosperitats und Depression periode", pp 13-43, in Der Lebendige Marxismus, Festgafe "Zum 70 Goburbtage von Karl Kautsky'' (also quoted in Kuznets, op at). See also reference to WolfTs book Het Economise Getij in WC Mitchell, The Business Cycle: Problem and its Setting, New York, National Bureau of Economic Research, 1927. 9 S Kuznets, "Review of Schuippeter's 'Bus ness Cycles' ", American Economic Review, vol 30, 1940, pp 250-271. 10 One of the most sign ficant characteristics of the upgrade of Long Wave is that prosperities are long-Lved and recessions are of short duration, whereas in the downswing, it is always the other way round. This characterisation fits the facts of the last two and a half decades very well. It E N Wolf, "The Rate of Surplus Value, the Organic Composition and the General Rate of Profit in th^ US Economy", American Economic Review, vol 69, June 1979, pp 329-341. 12 This does not imply that multinational banking system has not been playing a major role in the world economy, especially after the 1973 oil crisis. Thea' profits are quite considerable and they do transfer funds from one financial centre to another, which causes instability. The po^nt is that because of a variety of factors, of which taxation is only one, internally generated funds have played a very major role in financing lorg-term investment during the 1950's and 1960's.