Interpreting Bernard Lonergan’s General Theory of Economic Dynamics: Does it Complete Hayek, Keynes and Schumpeter?

Abstract

The paper reviews links between Bernard Lonergan's theory of innovative economic growth and cycles, and the ideas of Friedrich Hayek, John Maynard Keynes, and Joseph Schumpeter. They were contemporary economists, who remain influential today. For Lonergan, although markets define what is bought and sold in an exchange economy, production decisions are more fundamental. These decisions are choices about the direction of development, the standard of living, and variations in the distribution of wealth in a modern society. The paper shows how Lonergan's pure cycle theory extends mainstream theory to include a broader view of human behaviour and choice.