1. Introduction -- Part I Growth, macroeconomic imbalances and sustainable development -- 2. Is there any evidence of a deterioration of production capacities in the advanced economies? -- 3. Hysteresis, inflation and secular stagnation -- 4. New thinking of sustainable development and growth --...

This paper proposes a model that links households and firms, as usual, by markets for factors and goods and, additionally, by a banking sector that channels households' funds to firms and eliminates idiosyncratic risk. In equilibrium, agency costs and tax benefits of corporate debt are...