"FWIW, the consensus of macroeconomists these days seems to be that LM should be thrown away and IS kept. LM is based on the monetarist assumption that the central bank controls and targets the money supply, but real central banks don't act that way (and may not be able to do so)"
I'm aware of this Jim. The historical wrinkle of that is though that modern textbook ISLM is a reinterpretation of Hick's version while at the time they were multiple versions (harrod and meade's are the most famous one). -- -Nathan Tankus ----------------------------------------------------------------------------------------------------------------------------------------------- _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
