This paper evolves from the sharp contrast in Smithian and Keynesian views about the relationship between the financial structure and the economy. The Smithian perspective implies that the financial structure is irrelevant, whereas the Keynesian position concludes that effective financing is...

Schumpeter asserted that there were two types of business cycle theories: one in which cycles reflected dampened economic behavior and another in which cycles reflect explosive economic behavior. Both of these theories allowed that cycles could be either monotonic or oscillating. In this working...