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Money, Banking and Dynamics: Two Wicksellian routes from Mises to Hayek and Schumpeter

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  • Agnès Festré

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper examines and compares, in both historical and theoretical perspectives, Hayek and Schumpeter's account of the role played by banks and credit in their respective explanations of business cycles. The first section is focused on the common inheritance ofthese two authors, which can be traced back to Wicksell, going from Mises whose Theory of Money and Credit provides, as we shall see, a crucial link in this perspective.The two following sections deal with Hayek and Schumpeter's respective accounts as well ascritical reconstruction of this tradition. A close examination of their respective treatments ofthe banking system and its effects on economic productive structures then allows to see in anew light the theoretical question of the impact of credit on economic dynamics and its related policy proposals in a different light. The last section is dedicated to a comparison between Hayek and Schumpeter's views of the dynamics of monetary economies and their corresponding policy issues.

Suggested Citation

  • Agnès Festré, 2002. "Money, Banking and Dynamics: Two Wicksellian routes from Mises to Hayek and Schumpeter," Post-Print halshs-00271372, HAL.
    • Handle: RePEc:hal:journl:halshs-00271372
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00271372
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    References listed on IDEAS

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    1. Hans-Michael Trautwein, 1996. "Money, Equilibrium, and the Business Cycle: Hayek's Wicksellian Dichotomy," History of Political Economy, Duke University Press, vol. 28(1), pages 27-55, Spring.
    2. Hicks, J. R., 1979. "Critical Essays in Monetary Theory," OUP Catalogue, Oxford University Press, number 9780198284239.
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    7. Hayek, F. A., . "Money, Capital, and Fluctuations," University of Chicago Press Economics Books, University of Chicago Press, number 9780226321271 edited by McCloughry, R. K., January.
    8. Harrison, Glenn W & Morgan, Peter, 1990. "Search Intensity in Experiments," Economic Journal, Royal Economic Society, vol. 100(401), pages 478-486, June.
    9. Laidler, David, 1992. "Hayek on Neutral Money and the Cycle," University of Western Ontario, Departmental Research Report Series 9206, University of Western Ontario, Department of Economics.
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    12. Jonung,Lars (ed.), 1991. "The Stockholm School of Economics Revisited," Cambridge Books, Cambridge University Press, number 9780521391276, October.
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    Cited by:

    1. Richard Arena, 2015. "On the intellectual foundations of Hayek’s and Schumpeter’s economics: an appraisal," Journal of Evolutionary Economics, Springer, vol. 25(1), pages 77-90, January.
    2. Festré, Agnès, 2006. "Knut Wicksell and Ludwig von Mises on Money, Interest, and Price Dynamics," Journal of the History of Economic Thought, Cambridge University Press, vol. 28(3), pages 333-357, September.
    3. Viktor Vanberg, 2015. "Schumpeter and Mises as ‘Austrian Economists’," Journal of Evolutionary Economics, Springer, vol. 25(1), pages 91-105, January.
    4. Philippe Aghion & Agnès Festré, 2017. "Schumpeterian growth theory, Schumpeter, and growth policy design," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 25-42, January.

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