Government Deficits, Liquidity Preference, and Schumpeterian Innovation
The Jerome Levy Economics Institute, Working Paper No. 99
37 Pages Posted: 18 Nov 1998
Date Written: October 1993
Wray asserts that rigorous analyses of the role played by innovation in economic development must acknowledge the contribution of Joseph Schumpeter. However, the author suggests that the current stagnation confronting most developed, capitalist economies "cannot be understood without synthesizing Schumpeter's insights with those of Kalecki and Keynes." Hence, Schumpeter's work alone is inadequate in explaining the links between government deficits in ensuring aggregate demand and corporate profits.
JEL Classification: E62, O30
Suggested Citation: Suggested Citation