Preheat oven to 350°F. Cut the beef into 1 inch pieces and place in a bowl. Sprinkle the beef with salt and pepper. Add in half of the flour and toss the beef to coat.

In a Dutch oven or flameproof casserole, heat the oil over medium heat. Add the beef and brown on all sides. Add the chopped onion; cook, stirring, for 4 minutes. Add the garlic and the remaining flour; mix well. Stir in the broth, wine, bay leaf and thyme; bring mixture to a boil.

Cover the dish; transfer to oven. Bake for 1 hour. Remove the dish from the oven; add the carrots. Return to oven and bake 35 minutes longer.

Meanwhile, in a skillet, melt the butter over medium heat. Add the mushrooms and pearl onions; cooking, stirring until onions begin to brown, 5-7 minutes.

Remove the dish from the oven. Add the mushrooms and onions to the stew. Return to the oven and bake for 10 minutes. Remove the bay leaf and serve.