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dc.contributor.authorBloch, Harry
dc.identifier.citationBloch, H. 2014. Prices in Motion: Schumpeter’s Contribution to Price Theory. Centre for Research in Applied Economics Working Paper Series. Perth, W.A., Curtin University of Technology.

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.

dc.publisherCentre for Research in Applied Economics
dc.subjectJEL classification: B25 History of Economic Thought: Historical
dc.subjectPrice theory
dc.subjectEvolutionary economics
dc.titlePrices in Motion: Schumpeter’s Contribution to Price Theory
dc.typeWorking Paper
dcterms.source.seriesCentre for Research in Applied Economics Working Paper Series
curtin.accessStatusOpen access

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