These “certain conditions” were elaborated upon a decade later in another authoritative volume, this time by a collection of Harvard economists. In it Joseph Schumpeter, an Austrian émigré and follower of the work of other Austrian economists of the period, such as Hayek and Von Mises, argued that capitalism has at any given point a distinct “capital structure,” that long-run evolutionary form alluded to earlier, which manifests itself as the particular mix of productive assets that investment has generated over a given cycle. When there are investment booms, as there inevitably are in capitalism, both “too much” and “too much of the wrong type” of capital is invested in the economy.

Mark Blyth, Austerity, loc. 322