A Stock Flow Consistent Analysis of a Schumpeterian Innovation Economy. (28th January 2014)

• Record Type: Journal Article
• Authors: Caiani, Alessandro; Godin, Antoine; Lucarelli, Stefano
• Is Part Of: Metroeconomica. Volume 65:Number 3(2014:Aug.)
• Page Start: 397
• Page End: 429
• Publication Date: 2014-01-28
• Subjects: Economics -- Periodicals; 330
• DOI: 10.1111/meca.12045
• Languages: English
• ISSNs: 0026-1386

Abstract

<abstract abstract-type="main"> <title>Abstract</title> <p>Schumpeter argued that boom and bust cycles are inherent to the rise of innovation and constitute an unavoidable consequence of the way the capitalist system reacts to the emergence of a wave of innovations. This contribution aims to describe Schumpeterian economic development in a 'monetary theory of production' framework, emphasizing the crucial role played by credit creation, conceived as 'the monetary complement' of innovation. By adopting a stock flow consistent analytical approach, we analyze both the structural change process triggered in the real economy by the emergence of innovation, and the monetary dynamics arising during the various stages of the development process.</p> </abstract>