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Schumpeter on money, banking and finance: an institutionalist perspective

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  • Agnes Festre
  • Eric Nasica

Abstract

In this paper we provide an institutional interpretation of Schumpeter's analysis of money, banking and finance. We justify this interpretation by considering first Schumpeter's overall methodological perspective, in particular the role played by economic sociology in his approach, and second by showing that the way Schumpeter describes the successive steps of economic development - circular flow, steady state and development - provides a good illustration of how institutional change is progressively introduced into his analytical framework and of the leading role of the banking system in the overall evolution of the financial system.

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  • Agnes Festre & Eric Nasica, 2009. "Schumpeter on money, banking and finance: an institutionalist perspective," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 16(2), pages 325-356.
    • Handle: RePEc:taf:eujhet:v:16:y:2009:i:2:p:325-356
    DOI: 10.1080/09672560902891101
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    9. Joseph A. Schumpeter, 2002. "New Translations from Theorie der wirtschaftlichen Entwicklung," American Journal of Economics and Sociology, Wiley Blackwell, vol. 61(2), pages 405-437, April.
    10. Markus C. Becker & Thorbjørn Knudsen & James G. March, 2006. "Schumpeter, Winter, and the sources of novelty," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 15(2), pages 353-371, April.
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    Cited by:

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    3. Festré, Agnès & Garrouste, Pierre, 2016. "Wieser As A Theorist Of Institutional Change," Journal of the History of Economic Thought, Cambridge University Press, vol. 38(4), pages 463-483, December.
    4. Servaas Storm, 2018. "Financialization and Economic Development: A Debate on the Social Efficiency of Modern Finance," Development and Change, International Institute of Social Studies, vol. 49(2), pages 302-329, March.
    5. Cristiano Antonelli & Christophe Feder, 2023. "The foundations of Schumpeterian dynamics: The European evidence," Journal of Evolutionary Economics, Springer, vol. 33(1), pages 65-96, January.
    6. Callegari, Beniamino & Nybakk, Erlend, 2022. "Schumpeterian theory and research on forestry innovation and entrepreneurship: The state of the art, issues and an agenda," Forest Policy and Economics, Elsevier, vol. 138(C).
    7. Lambert, Thomas & Velardo, Tristan, 2019. "Schumpeter, the Banking System, and Innovation: Small versus Big Business," MPRA Paper 97742, University Library of Munich, Germany.
    8. Lumnije Thaçi, 2022. "Bank Loans Types and Economic Growth - Literature Review," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 8, July -Dec.
    9. Mário Graça Moura, 2017. "Schumpeter and the meanings of rationality," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 115-138, January.
    10. Carlos González-Rossano & Antonia Terán-Bustamante & Marisol Velázquez-Salazar & Antonieta Martínez-Velasco, 2023. "What Drives Profit Income in Mexico’s Main Banks? Evidence Using Machine Learning," Sustainability, MDPI, vol. 15(7), pages 1-19, March.
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    12. Havran, Dániel, 2017. "Schumpeter a tőkepiacon. Schumpeter finanszírozási elméletének fejlődése és életrajzi vonatkozásai [Schumpeter on the capital market: the evolution and biographical relations of Schumpeter's credit," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 1056-1072.

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