This paper tries to highlight some essential elements that emerge from Luigi Pasinetti's work. Much of the research project that Pasinetti developed, especially in the 1981 book, was already present in nuce in the 1974 collection of essays. Here the theory of effective demand is presented for...

The cross holding of interbank deposits represents an optimal ex-ante co-insurance arrangement whenever the uncertainty concerning banks' liquidity needs is idiosyncratic and imperfectly correlated. When a shock to aggregate liquidity demand occurs, however, such an arrangement could be...

When inflation picks up, central banks are most concerned that the de-anchoring of inflation expectations and the ignition of wage-price spirals will trigger inflation dynamic instability. However, such scenarios do not materialize in the standard New Keynesian theoretical framework for monetary...

The bilateral netting of mutual obligations is an institutional arrangement usually employed in payment systems to reduce settlement risks. In this paper we explore its advantages and pitfalls when applied to an inter-bank lending market, in which banks extend credit to - and borrow from - other...

This paper aims at proposing a first theoretical framework for studying the basic income sustainability. We consider the basic income not only as a tool of a policy to improve living standards and social well-being but, mostly, as the essential requisite to introduce a new stable compromise...