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Patinkin on IS-LM: An Alternative to Modigliani

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  • Goulven Rubin

Abstract

This paper studies Patinkin's contribution to the development of IS-LM, mostly Money Interest and Prices (1956), by comparing it to Modigliani's (1944, 1963). Patinkin's originality, it is claimed, lies in his analyzing the IS-LM model with a Walrasian methodology. Whereas Modigliani lacked an adequate method to deal with general equilibrium, his Walrasian approach allowed Patinkin to complete, to correct and to clarify the IS-LM model. However, in spite of its superiority, Patinkin's Walrasian recasting of the IS-LM model did not replace Modigliani's model as the referential version of IS-LM. To explain this fate, it is contended that Patinkin's work marked a methodological bifurcation in the history of IS-LM, opening a route departing from the original conception of IS-LM associated with Hicks and Modigliani and which was Marshallian in spirit.
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  • Goulven Rubin, 2004. "Patinkin on IS-LM: An Alternative to Modigliani," History of Political Economy, Duke University Press, vol. 36(5), pages 190-216, Supplemen.
    • Handle: RePEc:hop:hopeec:v:36:y:2004:i:5:p:190-216
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    1. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec..
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    Cited by:

    1. Michel De Vroey, 2020. "Should the History of Macroeconomics Steer Cear of the Fray or be Partisan? A Critical Essay on Banks and Finance in Modern Macroeconomics by B. Ingrao and C. Sardoni," LIDAM Discussion Papers IRES 2020028, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    2. Michel De Vroey, 2004. "The History of Macroeconomics Viewed against the Background of the Marshall-Walras Divide," History of Political Economy, Duke University Press, vol. 36(5), pages 57-91, Supplemen.
    3. Antonella Rancan, 2014. "Modigliani's comments on Sylos Labini's theory of unemployment (1956-1958)," PSL Quarterly Review, Economia civile, vol. 67(270), pages 269-282.
    4. Goulven Rubin, 2014. "Oskar Lange or how IS-LM came to be interpreted as a Walrasian model," Working Papers halshs-01018658, HAL.
    5. Goulven Rubin, 2011. "Oskar Lange and the influence of Walrasian theory during the Keynesian revolution," Working Papers halshs-00817758, HAL.
    6. Antonella Rancan, 2014. "Commento di Modigliani alla teoria della disoccupazione di Sylos Labini (attraverso la corrispondenza del 1956)," Moneta e Credito, Economia civile, vol. 67(267), pages 271-284.
    7. Rancan, Antonella, 2012. "Modigliani's 1944 Wage Rigidity Assumption and the Construction of the Neoclassical Synthesis," Economics & Statistics Discussion Papers esdp12069, University of Molise, Department of Economics.

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