IS-LM: uma história?

Post Walrasian Macroeconomics and IS / LM Analysis

In recent work I have tried to spell out a Post Walrasian approach to macroeconomics (Colander, 1995a) and to translate that Post Walrasian vision into the aggregate supply/aggregate demand framework (Colander, 1995b). In this paper I continue that work and begin to relate the Post Walrasian vision to the standard IS/LM analysis. The paper is not about high theory; instead it is about the pedag...

Patinkin on IS-LM: AnAlternative to Modigliani

Whereas Don Patinkin’s contribution to the development of the “neoclassical synthesis” is widely acknowledged (D’Autume 2000; Lucas [1980] 1981; Weintraub 1979), his name is generally forgotten when it comes to the history of IS-LM (e.g., see Darity and Young 1995). The aim of this essay is to fill this gap. To this end, I compare Patinkin’s contribution, especially Money, Interest, and Prices ...

Understanding Equilibrium in the IS/LM Model

The author still worries, however, that the student is memorizing the equilibrium condition, IS=LM generates Ye, without really understanding why the condition works. Most students are unable to explain why setting IS equal to LM generates the equilibrium level of output. I have, on rare occasion, heard a student give the following explanation: "Along the IS curve the goods market is in equilib...

LM 1771 and LM 3880 Based FPGA Power Supply

An inquiry into the multiplier process in IS - LM model

The multiplier theory is still an important analytical tool in many macroeconomic textbooks. For example, a number of textbook authors use the theory to explain the process of growth in goods market by expanding the multiplier process into a geometric series, and thus obtain the route of economic growth. Then some students raise an interesting question: Can we induce the dynamics of the monetar...