Prices in Motion: Schumpeter’s Contribution to Price Theory
Schumpeter distinguishes between the circular flow of economic activity and economic development. The former is characterised by equilibrium, while the latter involves discontinuous change that induces business cycles. Schumpeter argues that with development prices are generally in motion. Schumpete...
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| Format: | Working Paper |
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Centre for Research in Applied Economics
2014
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| Online Access: | http://www.business.uwa.edu.au/__data/assets/pdf_file/0012/2330130/Harry-Bloch.pdf http://hdl.handle.net/20.500.11937/7266 |
| _version_ | 1848745320278654976 |
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| author | Bloch, Harry |
| author_facet | Bloch, Harry |
| author_sort | Bloch, Harry |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Schumpeter distinguishes between the circular flow of economic activity and economic development. The former is characterised by equilibrium, while the latter involves discontinuous change that induces business cycles. Schumpeter argues that with development prices are generally in motion. Schumpeter’s theory of the business cycle has been heavily criticised. Specific criticisms relating to his price theory include its characterisation of prices stabilising near the Walrasian competitive equilibrium for a stationary economy and its prediction of a downward trend in prices over the longest cycles. This paper reviews Schumpeter’s theory and the critiques before suggesting a way forward to a revised theory of prices in motion. |
| first_indexed | 2025-11-14T06:15:29Z |
| format | Working Paper |
| id | curtin-20.500.11937-7266 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T06:15:29Z |
| publishDate | 2014 |
| publisher | Centre for Research in Applied Economics |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-72662017-01-30T10:58:47Z Prices in Motion: Schumpeter’s Contribution to Price Theory Bloch, Harry Schumpeter Evolutionary Institutional JEL classification: B25 History of Economic Thought: Historical Price theory Austrian Evolutionary economics Schumpeter distinguishes between the circular flow of economic activity and economic development. The former is characterised by equilibrium, while the latter involves discontinuous change that induces business cycles. Schumpeter argues that with development prices are generally in motion. Schumpeter’s theory of the business cycle has been heavily criticised. Specific criticisms relating to his price theory include its characterisation of prices stabilising near the Walrasian competitive equilibrium for a stationary economy and its prediction of a downward trend in prices over the longest cycles. This paper reviews Schumpeter’s theory and the critiques before suggesting a way forward to a revised theory of prices in motion. 2014 Working Paper http://hdl.handle.net/20.500.11937/7266 http://www.business.uwa.edu.au/__data/assets/pdf_file/0012/2330130/Harry-Bloch.pdf Centre for Research in Applied Economics fulltext |
| spellingShingle | Schumpeter Evolutionary Institutional JEL classification: B25 History of Economic Thought: Historical Price theory Austrian Evolutionary economics Bloch, Harry Prices in Motion: Schumpeter’s Contribution to Price Theory |
| title | Prices in Motion: Schumpeter’s Contribution to Price Theory |
| title_full | Prices in Motion: Schumpeter’s Contribution to Price Theory |
| title_fullStr | Prices in Motion: Schumpeter’s Contribution to Price Theory |
| title_full_unstemmed | Prices in Motion: Schumpeter’s Contribution to Price Theory |
| title_short | Prices in Motion: Schumpeter’s Contribution to Price Theory |
| title_sort | prices in motion: schumpeter’s contribution to price theory |
| topic | Schumpeter Evolutionary Institutional JEL classification: B25 History of Economic Thought: Historical Price theory Austrian Evolutionary economics |
| url | http://www.business.uwa.edu.au/__data/assets/pdf_file/0012/2330130/Harry-Bloch.pdf http://hdl.handle.net/20.500.11937/7266 |