Schumpeterian Business Cycles: Innovations, Bubbles and Global Crises1
Derya Guler Aydin, Bahar Araz Takay

Abstract
This study aims to research whether or not Schumpeter’s basic arguments provide analytical tools for determining the causes and results of the Global crisis. Schumpeter suggests that the very success of capitalism is the basic cause of its failure. Thus, in the first section, the dynamic evolutionary characteristics of capitalism within the Schumpeterian framework will be examined. The topics of the second section are the business cycles, innovations and the economic and institutional transformations of the system. After determining the causes of the Global crisis from the Schumpeterian point of view, the next bubble which would cause another crisis will be investigated in the last section.

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