Business Cycles.

New York: McGraw-Hill Book Company, Inc.,, 1939. First edition, fourth printing (following the first of the same year), of one of Schumpeter's most significant contributions to economic theory, 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". Provenance: "Aaronovitch", presumably Sam Aaronovitch (1919-1998), a Communist economist and head of the economics department at South Bank Polytechnic, with his neat ink signature on the front free endpaper of vol. I. Two volumes, octavo. Original red cloth, spines ruled and lettered on black ground in gilt, border to covers in blind. With 60 charts in the text. Infrequent faint pencil underlining to contents. Light bumping and rubbing, minor browning and foxing to endpapers and edges, splash of blue ink to outer edge of vol. I: a very good copy. Swedberg S.010.