Lowe and Schumpeter on Business Cycles

Christian Gehrke has translated and introduced to Adolph Lowe&s;s 1926 classical paper “How is business cycle theory possible at all? “Lowe&s;s article with its emphasis on the incompatibility of a satisfying analysis of business cycles within the dominant equilibrium approach in economics had a major impact on the subsequent debate in the German language area, as clearly visible in the case of Hayek. Lowe himself had been influenced by Schumpeter&s;s theory of economic development and the latter&s;s distinction between dynamic and static analysis. The article will focus on the comparison of Lowe&s;s with Schumpeter&s;s approach in business cycle theory.