The increasing frequency and magnitude of financial bubbles since the 1970s can also be interpreted as a symptom of stagnation. The absence of techno-scientific progress, coupled with an abundance of capital enabled by experimental monetary policies and a general scarcity of vision, has fueled many of the bubbles we’ve witnessed in the past few decades. But, as we’ll show, these bubbles, which are largely driven by financialization, low yields, and the lack of productive investment opportunities, need to be distinguished from innovation-accelerating bubbles.
