I propose a dynamic production model under the joint constraints of technology, budget and no arbitrage. Comparative static and dynamic analysis indicate that this model is consistent with the behavior of firms in reality, and can explain a wide range of economic phenomena. Compared with...

At the beginning of the 90’s there was a consensus as to the vital theoretical matters on monetary policy with the result that currently there are few diverging points regarding the fact that a modification in the money offer generates, on a short term, significant consequences on production,...

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Policy actions by the Federal Reserve during the recent financial crisis often involve recapitalization of banks. This paper offers a theory of the non-neutrality of money for policy actions taking the form of injecting capital into banks via nominal transfers, in an environment where banking...