| Popis: |
The final chapter of Part II highlights Schumpeter's seminal theory of economic development as a deliberate monetary conception and its genuine account of the nexus between finance and the real economy. Innovation and creative destruction critically depend on the creation and reallocation of purchasing power through finance. The chapter offers a brief reconstruction, which assimilates Schumpeter's further elaborations on selected themes in his later publications along several basic premises, such as open opportunity sets, entrepreneurship and innovation, temporary monopoly profits, or discontinuous change. Furthermore, venture investors must trust the entrepreneurs' vision and provide them with the purchasing power needed to control the means of production in advance. Successful innovations induce imitation and their progressive diffusion annihilates the temporary monopoly surplus, thereby decreasing prices, raising demand and fostering the overall growth of real income. Moreover, innovations do not occur independently, but are clustered, generating overlapping waves of business fluctuations. |
