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Government Deficits, Liquidity Preference, and Schumpeterian Innovation

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  • L. Randall Wray

    (The Jerome Levy Economics Institute)

Abstract

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.

Suggested Citation

  • L. Randall Wray, 1999. "Government Deficits, Liquidity Preference, and Schumpeterian Innovation," Macroeconomics 9907005, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:9907005
    Note: Type of Document - Acrobat PDF; prepared on IBM PC; to print on PostScript; pages: 37; figures: included
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    References listed on IDEAS

    as
    1. Wray, L Randall, 1992. "Alternative Theories of the Rate of Interest," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 16(1), pages 69-89, March.
    2. Robert Heilbroner, 1993. "Was Schumpeter Right after All?," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 87-96, Summer.
    3. John F. Walker & Harold G. Vatter, 1989. "Why Has the United States Operated Below Potential Since World World II?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 11(3), pages 327-346, March.
    4. Riccardo Bellofiore, 1985. "Money and Development in Schumpeter," Review of Radical Political Economics, Union for Radical Political Economics, vol. 17(1-2), pages 21-40, March.
    5. J. A. Kregel, 1993. "A Post Keynesian Explanation of the Causes of the Current World Slupm," Working Papers 182, Dipartimento Scienze Economiche, Universita' di Bologna.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Plan B: Interview with Lester Brown about Collapse
      by Tom Hickey in Mike Norman Economics on 2011-03-28 23:46:00

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    JEL classification:

    • E - Macroeconomics and Monetary Economics

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