Following Schumpeter's Footsteps

New Book by WIFO Economist Michael Peneder and WU Economic Historian Andreas Resch
In their new book "Schumpeter's Venture Money" (Oxford University Press), innovation researcher and WIFO economist Michael Peneder and economic historian Andreas Resch (Vienna University of Economics and Business, WU) present a comprehensive reinterpretation of Schumpeter's theory of money against the background of monetary history.

The focus is on the "non-neutrality" of money – i.e. the influence of money on the real economy through the financing of new entrepreneurial ventures. The work is based on extensive archival research in Vienna and Harvard, both of which were long-time places of Schumpeter's work. In the process, many new facts come to light about his financial adventures as a banker and proto-venture capitalist in Vienna in the 1920s, which failed spectacularly.

At the same time, his monetary theory of economic development creates a narrative framework that succeeds in bringing together monetary history with more recent events – such as the emergence of venture capital, the economic and financial market crisis of 2008-09 or the growing importance of digital cryptocurrencies – in an accessible way.

Further information about the book can be found here.