Thursday, June 4, 2015

#tbt John Hicks 1980 "IS-LM": An Explanation

Nearly every intermediate macroeconomics class teaches the IS-LM model. I have to admit it never really made sense to me until grad school. To be technical, it never made sense to me, but I learned how the assumptions of the model worked.

This model, originally created by John Hicks as a pedagogical tool, became an analytical monster. This article was an attempt to correct this misapplication.

It didn't work.

Download the article here

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