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Money, Banking and Dynamics: Two Wicksellian routes from Mises to Hayek and Schumpeter


  • Agnès Festré

    () (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - UCA - Université Côte d'Azur - CNRS - Centre National de la Recherche Scientifique)


This paper examines and compares, in both historical and theoretical perspectives, Hayek and Schumpeter's account of the role played by banks and credit in their respective explanations of business cycles. The first section is focused on the common inheritance ofthese two authors, which can be traced back to Wicksell, going from Mises whose Theory of Money and Credit provides, as we shall see, a crucial link in this perspective.The two following sections deal with Hayek and Schumpeter's respective accounts as well ascritical reconstruction of this tradition. A close examination of their respective treatments ofthe banking system and its effects on economic productive structures then allows to see in anew light the theoretical question of the impact of credit on economic dynamics and its related policy proposals in a different light. The last section is dedicated to a comparison between Hayek and Schumpeter's views of the dynamics of monetary economies and their corresponding policy issues.

Suggested Citation

  • Agnès Festré, 2002. "Money, Banking and Dynamics: Two Wicksellian routes from Mises to Hayek and Schumpeter," Post-Print halshs-00271372, HAL.
  • Handle: RePEc:hal:journl:halshs-00271372
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    References listed on IDEAS

    1. Hans-Michael Trautwein, 1996. "Money, Equilibrium, and the Business Cycle: Hayek's Wicksellian Dichotomy," History of Political Economy, Duke University Press, vol. 28(1), pages 27-55, Spring.
    2. Hicks, J. R., 1979. "Critical Essays in Monetary Theory," OUP Catalogue, Oxford University Press, number 9780198284239.
    3. Marina Colonna & Harald Hagemann, 1995. "The Economics of F.A. Hayek," Books, Edward Elgar Publishing, volume 0, number 101, April.
    4. White, Lawrence H, 1999. "Hayek's Monetary Theory and Policy: A Critical Reconstruction," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 31(1), pages 109-120, February.
    5. Laidler,David, 1999. "Fabricating the Keynesian Revolution," Cambridge Books, Cambridge University Press, number 9780521641739, April.
    6. Laidler, D., 1992. "Hayek on Neutral Money and the Cycle," UWO Department of Economics Working Papers 9206, University of Western Ontario, Department of Economics.
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    Cited by:

    1. Philippe Aghion & Agnès Festré, 2017. "Schumpeterian growth theory, Schumpeter, and growth policy design," Journal of Evolutionary Economics, Springer, vol. 27(1), pages 25-42, January.
    2. Festré, Agnès, 2006. "Knut Wicksell and Ludwig von Mises on Money, Interest, and Price Dynamics," Journal of the History of Economic Thought, Cambridge University Press, vol. 28(03), pages 333-357, September.
    3. Viktor Vanberg, 2015. "Schumpeter and Mises as ‘Austrian Economists’," Journal of Evolutionary Economics, Springer, vol. 25(1), pages 91-105, January.


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