Business Cycles.

New York and London: McGraw-Hill Book Company, Inc.,, 1939. A monumental study First edition, first printing, of one of Schumpeter's most significant contributions to economic theory, and among the seminal texts of business cycle literature. As with his earlier works, Schumpeter placed the entrepreneur at the centre of events, which was perhaps why it "met with a less-than-enthusiastic reception. The monumental nature of this study, which included extensive theoretical, historical, and statistical work, placed it beyond the full comprehension of most economists. Its length, combined with the rising tide of Keynesian economics, put it beyond the interests of the profession as well. Colleagues, however, could readily comprehend and respect the amount of effort and scholarly seriousness that went into the project" (ANB). Schumpeter rejected the Keynesian view that business cycles were the result of fluctuations in aggregate demand. Instead, "waves of innovation" coming from entrepreneurs cause fluctuations, increasing economic activity, which peaks and then declines as the economy is saturated. In the resultant recession phase the economy adjusts to the innovations. New innovations then restart the process. These cycles are a beneficial and necessary part of the economic process, Schumpeter held, in contrast to the Keynesian aim of engineering stable economic growth. So too, Schumpeter continues his glorification both of the entrepreneur as the key agent of change, and of capitalism as a positive process of "creative destruction". 2 vols, octavo. With 60 charts in the text. Original red cloth, spines ruled and lettered in gilt, blindstamp border to covers. Ex-library of Somerville College, Oxford, with their plates to front pastedowns, marked withdrawn; Blackwell's bookseller ticket to front pastedowns. Light rubbing at extremities, shadow of removed library shelf number to spines, front joint of vol. I cracked at foot but still firm, residue of removed sticker to front free endpapers, speck of soiling to fore edge of vol. I, contents clean save for a few very minor pencil notations. A good copy. Swedberg S.010.