We analyze the causes of money circulation when the issuance of private debts allows agents to transact with each other. We show in general equilibrium that credit money enables agents to transfer their costs of debt management to the banking system. If the cost to access to liquidity is too...

We present a model of growth based on the link between technical change and division of labour. Division of labour generates opportunities of introduction of new capital goods, which can help or even replace workers. The tasks which become useless disapear and new tasks are created to produce...

This paper explores the relationship between credit constraints and inflation. It is shown that a small positive inflation can alleviate credit constraints and that this effect can justify a positive long run inflation target for central banks without any assumption concerning nominal...