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IS-LM and Modern Macroeconomics

  • Warren Young
  • Ben Zion Zilberfarb

Part of the Recent Economic Thought book series (RETH, volume 73)

Table of contents

  1. Front Matter
    Pages i-ix
  2. Warren Young, Ben Zion Zilberfarb
    Pages 1-6
  3. David F. Heathfield
    Pages 43-56
  4. Colin Rogers, T. K. Rymes
    Pages 77-90
  5. Bruce Littleboy
    Pages 91-105
  6. Bert G. Hickman
    Pages 107-120
  7. Robert W. Dimand
    Pages 121-131
  8. Back Matter
    Pages 161-166

About this book

Introduction

IS-LM is perhaps the prime example of `cognitive dissonance' in economics, and is problematic to many economists. On the one hand, the IS-LM model is still taught by many academic economists or they use it to derive the AD-AS approach. On the other hand, the same economists realize the limitations of the basic IS-LM model and would not now use it for policy analysis, as they did in the past. The distinction between pedagogical and analytical efficacy is made by all the authors in this volume regarding the IS-LM model. Indeed, even those who would reject using the model for modern policy analysis still see the basic model as useful for teaching purposes. Moreover, in an augmented form, some of the authors in this volume would even see fit to use IS-LM for modern policy analysis. As will be seen, therefore, the IS-LM model is `not yet dead'. Rather, the model's `plasticity' has enabled it to undergo a metamorphosis into augmented form, enabling its continuing utilization in economics accordingly.

Keywords

IS-LM Keynes econometrics macroeconomics

Editors and affiliations

  • Warren Young
    • 1
  • Ben Zion Zilberfarb
    • 1
  1. 1.Department of EconomicsBar Ilan UniversityIsrael

Bibliographic information

  • DOI https://doi.org/10.1007/978-94-010-0644-6
  • Copyright Information Kluwer Academic Publishers 2000
  • Publisher Name Springer, Dordrecht
  • eBook Packages Springer Book Archive
  • Print ISBN 978-0-7923-7966-9
  • Online ISBN 978-94-010-0644-6
  • Series Print ISSN 0924-199X
  • Buy this book on publisher's site