This thesis applies several econometric methods to a selection of country panels to study how growth is influenced by financial development and government debt. The first part presents the thesis discussion, including a synthesis on financial development, government debt, money supply, and...

1 Introduction . 10 2 Alternative models for optimal price setting 16 2.1 Basic model with endogenous supply 17 2.2 Optimal price setting models . 21 2.2.1 Optimal price setting with fully flexible prices 21 2.2.2 Optimal non-overlapping price setting with nominal rigidities . 23 2.2.3 Optimal...