The control structure over money and real assets is considered in the process of cost innovation. The work here contrasts with the ﬁrst part of this paper where the emphasis was on the physical aspects of innovation. Here the emphasis is primarily on the money supply aspects of innovation. We conclude with observations on evaluation and the locus of control in the process of innovation.
Shubik, Martin and Sudderth, William D., "Cost Innovation: Schumpeter and Equilibrium. Part 2: Innovation and the Money Supply" (2012). Cowles Foundation Discussion Papers. 2249.