This paper proposes a model of industrial innovation linked to financial liberalisation where agents are characterised by heterogeneous innovative abilities. Individual researchers may either be employed by a large firm and work together on the firm's innovative project, or they may...

During the recent inflation episode, the paradigm of separated objectives for monetary and fiscal policies has shown some limits. Fiscal policies have helped mitigate inflation. We advocate for the emergence of a new paradigm that gives equal consideration to fiscal and monetary policies and...

We show that the long-run neutrality of inflation on capital accumulation obtained in complete market models no longer holds when households face binding credit constraints. Borrowing-constrained households are not able to rebalance their financial portfolio when inflation varies, and thus...

This paper presents a growth model based on continuous increases in division of Labour. Division of Labour takes place within each firm. lt raises the productivity of workers but it is limited by coordination costs. This division of labour generates innovation opportunities and allow for the...

Financial crises are often associated with an endogenous credit reversal followed by a fall in asset prices and serious disruptions in the financial sector. To account for this sequence of events, this paper constructs a model where the excessive risk-taking of portfolio investors leads to a...

Cet article présente un mécanisme de croissance fondé sur le changement auto-entretenue de la division du travail. La division du travail a lieu au sein des firmes. Elle engendre des gains de productivité dans la firme, mais elle est limitée par les coûts de coordination. La division du...

This paper proposes a model of technical change based on Adam Smith's analysis of the role of division of labor in economic growth. Technical change is the discovery of new capital goods which help workers or even replace workers performing precise tasks. As a consequence, the number of...

The distribution of money across households is much more similar to the distribution of financial assets than to that of consumption levels, even controlling for life-cycle effects. This is a puzzle for theories which directly link money demand to consumption, such as cash-in-advance (CIA),...

This article identifies a new channel through which inflation affects the real economy. In a simple monetary model where agents face heterogenous income flows, it is proven that credit constraints create heterogeneity in money demand. Because of this heterogeneity, long run inflation affects the...