Yes, Schumpeter was wrong. Mises argued that any credit creation from the issue of fiduciary media generates mal-investments which must be liquidated later. People’s time preference determine both the pure rate of interest and the extent of saving-investing people prefer. People’s preferred saving-investing releases resources from lower-order to higher-order production. Credit creation from fiduciary media issue does not create more resources it merely diverts more of them from lower-order to higher-order production than people desire according to their time preferences.
Take a look at chapter 20 in Ludwig von Mises’s Human Action:
http://library.mises.org/books/Ludwig%20von%20Mises/Human%20Action.pdf
Here is Murray Rothbard on Schumpeter:
https://mises.org/journals/rae/pdf/R1_6.PDF
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