Steindl on instability and stabilization policy

Steindl worked all of his life to intergrate the explanation of cycles and trends. In his most elaborate model, stochastic innovations trigger off a dynamic process among innovators and their competitors acting through multiplier distribution of income, accumulation of profit and utilization of capacities. History and institutions find ample room in this model and so stabilization policy becomes a complex process. Demand management appears secondary to income policy, competition policy, technology policy and to stabilization of expectations. Steindl refused to give direct policy advice, but indirectly the Austrian policy of Austrokeynesianism heavily learned from Steindl.