A Stock Flow Consistent Analysis of a Schumpeterian Innovation Economy

33 Pages Posted: 20 May 2014

See all articles by Alessandro Caiani

Alessandro Caiani

University of Pavia - Faculty of Economics

Antoine Godin

Centre d'économie de l'Université de Paris Nord (CEPN); Agence Française de Développement (AFD); Hans-Boeckler-Stiftung - Macroeconomic Policy Institute (IMK)

Stefano Lucarelli

University of Bergamo

Date Written: July 2014

Abstract

Schumpeter argued that boom and bust cycles are inherent to the rise of innovation and constitute an unavoidable consequence of the way the capitalist system reacts to the emergence of a wave of innovations. This contribution aims to describe Schumpeterian economic development in a ‘monetary theory of production’ framework, emphasizing the crucial role played by credit creation, conceived as ‘the monetary complement’ of innovation. By adopting a stock flow consistent analytical approach, we analyze both the structural change process triggered in the real economy by the emergence of innovation, and the monetary dynamics arising during the various stages of the development process.

Suggested Citation

Caiani, Alessandro and Godin, Antoine and Lucarelli, Stefano, A Stock Flow Consistent Analysis of a Schumpeterian Innovation Economy (July 2014). Metroeconomica, Vol. 65, Issue 3, pp. 397-429, 2014. Available at SSRN: https://ssrn.com/abstract=2438985 or http://dx.doi.org/10.1111/meca.12045

Alessandro Caiani (Contact Author)

University of Pavia - Faculty of Economics ( email )

Corso Strada Nuova, 65
27100 Pavia
Italy

Antoine Godin

Centre d'économie de l'Université de Paris Nord (CEPN) ( email )

UMR7115
Université Paris-Nord
Paris XIII
France

Agence Française de Développement (AFD) ( email )

5, rue Roland Barthes
Paris Cedex 12, 75598
France

Hans-Boeckler-Stiftung - Macroeconomic Policy Institute (IMK) ( email )

Hans-Böckler-Straße 39
40476 Düsseldorf
Germany

Stefano Lucarelli

University of Bergamo ( email )

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