Credere and Debere
This chapter concludes the book by returning to the question of capital itself. After the heroic phase of industrial growth came the great bubble; these were two sides of a single process. If not checked, the system of creating credit capital not only can but must produce great debt crises. This is a point Schumpeter did not properly grasp in his theory. Japan's “asset bubble”—or debt bubble—when it reached its peak in 1989 was the biggest financial bubble in history up to that point. Foreign commentators imagined then that it was a uniquely Japanese problem. It now has the appearance of a precursor to the global credit bubble centered on the United States and Britain, which continued to build to its own peak in 2007–8. This brings us to some limits and blind spots in Schumpeter's analysis. It brings us also to the question we collectively face today: What comes after the age of Schumpeterian finance?
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