ABSTRACT
This conclusion presents some closing thoughts on the concepts covered in the preceding chapters of this book. The book recaps the main points from Schumpeter's price theory before reviewing the strengths and weaknesses of the theory. Schumpeter starts the economy in a stationary state with prices determined by perfectly competitive long-run general equilibrium. Movements in the price system and price level away from equilibrium values reduce the flow of innovations by making the profitability of innovations more difficult to assess for both entrepreneurs and bankers. Creative destruction also occurs in recession, with competition between the products of innovators and established firms displacing their competition for means of product. The book discusses the reconstruction of Schumpeter's price theory starting with rejecting the proposition of identical norms for developing and stationary economies.
