10,759 research outputs found
IS-LM and Monetarism
No full textThis paper discusses monetarist objections to the IS-LM model. We explore the views of two principal spokesmen for monetarism: Milton Friedman and the team of Karl Brunner and Allan Meltzer. Friedman did not explicitly state the reasons he generally chose not to use the IS-LM model in rejecting Keynesian views on the demand function for money, the role of autonomous expenditures in cyclical fluctuations, the potency of fiscal policy as against monetary policy, etc. He presented statistical findings, historical evidence, and econometric results to support his alternative analysis of macroeconomics, but his critics were unconvinced. In 1970, in an effort to use his critics' common language, he set up a model with explicit terms for IS-LM to encompass both the quantity theory and the income-expenditure theory. Friedman attributed the failure of this effort to the fact that he was a Marshallian, his opponents Walrasians. Brunner and Meltzer's objections to IS-LM were explicit. They found it too spare, so they elaborated it by adding a credit market, disaggregating the asset market by specifying three assets: base money, government debt, and real capital. They set up a model with financial institutions and utilized it to study the effects of a variety of policies. In brief, summarizing the views of both Friedman and Brunner and Meltzer, monetarists dislike the IS-LM framework because it limits monetary influence too narrowly, essentially to the interest elasticity of money demand, and defines investment in an excessively narrow fashion, and even that is not explicit.
Colección: Perfil #3
No full textThis board-book version of LM turns out to be quite creative. Ratoncete comes from school every afternoon and goes through the forest looking for adventures. He apparently blasts a horn into the ear of the sleeping lion. Don Leon wants to spank him as a result, but Ratoncete offers an apology, not an offer of help. Later, he happens upon the lion in his trap of ropes. 8 pages, counting both covers. 6½" x 9".Language note: SpanishNo Autho
Rethinking the IS in IS-LM: adapting Keynesian tools to non-Keynesian economies Part 2
No full textThe IS-LM diagram was developed as a tool for analyzing Keynesian economies-economies with sticky prices and myopic households. In Part 1 of this article, Evan Koenig showed how a graphical apparatus similar to the traditional IS-LM diagram can be used to analyze economies with a fixed capital stock and optimizing, forward-looking households. Part 2 extends the earlier analysis to an economy with capital investment. As before, an expectations-augmented variant of the IS-LM model is found to include a popular real-business-cycle model as a special case. Thus, the IS-LM diagram has wide applicability as a pedagogical device and as a framework within which to discuss policy.Macroeconomics
Markets Equilibrium: The Is-Lm Model
No full text. The purpose of this study is to analyze how the concept of markets equilibrium: the IS-LM Model. This research uses library research method by using reference sources from books and journals according to the theme. The author uses a qualitative method which is explained graphically, namely the market balance of the IS-LM model where the focus is on money and goods markets associated with macroeconomics where researchers take the side of investors. The results of this study are that the balance in the economy is the point where the IS and LM curves intersect. This point provides an interest rate (r) and income level (Y) that satisfies the equilibrium conditions that occur in the goods market and money market. In other words, planned spending equals actual spending, and the demand for real money balances equals the supply. So that the IS-LM balance, it is stated that IS=LM
<Articles>A Dynamical IS-LM Model
No full text[抄録]IS-LM モデルは、ヒックスによるケインズ経済学の因果関係を重視しながら要約したモデルと解釈することができる。IS-LM モデルの安定性分析はすでに研究成果があるが、1S-LM モデルの動学化はほとんど研究成果がない。本稿は IS-LM モデルの動学化を試みる。まず投資関数に資本ストックを取り入れ、資本蓄積と経済の変動を考える。次にカルドアモデルを考慮し、投資の予想収益率表の変化を仮定し、経済に循環が発生することを考察する。
[Abstract]In this paper, The author tries to build a Dynamical IS-LM Model. The lnvestment depends on two factors, one is the rate of interest, and the other is the rate of prosperity yield of the investment. I will focus on the second factor. As was shown by Kaldor, the rate of prosperity yield has nonlinear fluctuations. By means of this character, This study proposes an IS-LM model that generates a cycle.departmental bulletin pape
LM tests of spatial dependence based on bootstrap critical values
No full textMinistry of Education, Singapore under its Academic Research Funding Tier 1Published in Journal of Econometrics https://doi.org/10.1016/j.jeconom.2014.10.005</p
IS-LM: a history?
No full textABSTRACT For some economists, the IS-LM model is already past, corresponding to a remote phase of the history of economic thought. In this paper, we try to demonstrate that this is not necessarily true. At the same time, we take advantage of the model’s longevity to provide a brief account of some events in Macroeconomics. Also, we call attention for the increasing differences between “academic” and “practical” macroeconomists, a fact that may indicate the existence of problems pertaining to teaching and applications in the field. Despite all the model’s flaws, we believe that it hasn’t entered to the hall of historical icons of Economics yet and it may still be useful, at least in the sense of training younger generations of students with basic macroeconomic concepts.</p
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