Emil Lederer’s Theory of Economic Fluctuations and the Role of Financial Institutions

Angelos Vouldis, Panayotis Michaelides and John Milios

Forum for Social Economics, 2012, vol. 41, issue 1, 30-45

Abstract: Emil Lederer was characterized as the “leading academic socialist of Germany in the 1920’s” by Joseph Schumpeter and was a highly respected economist of his time. However, most aspects of his work remain totally unexplored. This paper focuses on Emil Lederer’s theory of economic fluctuations defending the thesis that certain aspects of Lederer’s conceptualization of economic fluctuations underwent considerable modifications when his 1925 article Konjunktur und Krisen is compared with his 1938 book Technical Progress and Unemployment , a shift unacknowledged so far in the literature. In his first attempt to tackle the issue, in Konjunktur und Krisen (1925), Lederer had constructed an explanation consistent with the so-called “disproportionality theory” introduced by Tugan-Baranowsky (codified as “early Lederer”). However, Lederer’s conception of the business cycle during the 1930s and especially in his major work Technical Progress and Unemployment underwent considerable modifications. Lederer’s (1938) analysis is, apparently, very ‘Schumpeterian’ (codified as “late Lederer”). In this version of his theory, the cycle is explained by supply-side factors, and more specifically by technical change. Additionally, Lederer’s view on the role of financial institutions (credit and banks) with regards to business cycles is analysed. Lederer avoided attributing a causative role to monetary factors. The interrelation between ‘real’ factors and financial institutions constitutes an essential element in his analysis of the business cycle.

Date: 2012
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1007/s12143-010-9086-1 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Emil Lederer’s Theory of Economic Fluctuations and the Role of Financial Institutions (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:fosoec:v:41:y:2012:i:1:p:30-45

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RFSE20

DOI: 10.1007/s12143-010-9086-1

Access Statistics for this article

Forum for Social Economics is currently edited by William Milberg, Dr Wolfram Elsner, Philip O'Hara, Cecilia Winters and Paolo Ramazzotti

More articles in Forum for Social Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().