AbstractThe emission of steady compact jets observed in the hard spectral state of X-ray binaries is likely to be powered by internal shocks caused by fluctuations of the outflow velocity. The dynamics of the internal shocks and the resulting spectral energy distribution (SED) of the jet is very sensitive to the shape of the Power Spectral Density (PSD) of the fluctuations of the jet Lorentz factor. I use Monte-Carlo simulations to investigate this dependence. It turns out that Lorentz factor fluctuations injected at the base of the jet with a flicker noise power spectrum (i.e. P(f) ∝ 1/f) naturally produce the canonical flat SED observed from radio to IR band in X-ray binary systems in the hard state. This model also predicts a strong, wavelength dependent, variability that resembles the observed one. In particular, strong sub-second variability is predicted in the infrared and optical bands.