Helpman and Krugman (Market structure and foreign trade. Increasing returns, imperfect competition, and the international economy. MIT Press, Cambridge, <CitationRef CitationID="CR27">1985</CitationRef>) provide a synthesis of the traditional factor proportions theory of international trade and the theory of international trade due to the...</citationref>

New Keynesian economics stresses the positive link between firms' net worth, on the one hand, and the equilibrium level of credit granted and aggregate employment, on the other hand. The present paper argues that once money is introduced and adaptive inflation expectations are assumed, an...