Intertemporal complementarity and money in an economy out of equilibrium

The role of money clearly stands up in a truly irreversible process of economic change, like the building up of an altogether new productive capacity. Money has an essential role in this process, although not in the usual sense of modifying the real equilibria of the economy. As a matter of fact the problem to be faced in the context considered-where focus is on the process of change in itself rather than on its outcome-is theviability of the process of change. This paper shows that it is indeed the availability of financial resources at the right moment during the process that determines its viability, and that this stresses the fact that, out of equilibrium,real choices cannot be separated from financial decisions.