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Vplyv monetárneho zásahu v rámci IS-LM modelu s dynamickou úpravou cien a adaptívnymi očakávaniami
[Effect of Monetary Intervention in the Frame of IS-LM Model with Dynamic Price Adjustment and Adaptive Expectations]

Author

Listed:
  • Szomolányi Karol
  • Lukáčik Martin
  • Lukáčiková Adriana

Abstract

An assumption that a central bank can influence the real interest rates is the object of our interest. In the paper we form and solve a model which corresponds to Romer's (2000) assumptions. Our model is IS-LM augmented by a conception of price-adjusting after monetary intervention and inflation expectations. A monetary policy rule is derived from the model. Moreover, it offers a demonstration of economic behaviour by different economic assumptions of different economic schools, similar to one in the book of Heijdra (2002).

Suggested Citation

  • Szomolányi Karol & Lukáčik Martin & Lukáčiková Adriana, 2011. "Vplyv monetárneho zásahu v rámci IS-LM modelu s dynamickou úpravou cien a adaptívnymi očakávaniami [Effect of Monetary Intervention in the Frame of IS-LM Model with Dynamic Price Adjustment and Ada," Politická ekonomie, Prague University of Economics and Business, vol. 2011(1), pages 47-57.
    • Handle: RePEc:prg:jnlpol:v:2011:y:2011:i:1:id:771:p:47-57
    DOI: 10.18267/j.polek.771
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    References listed on IDEAS

    as
    1. Hsing, Yu, 2005. "Application of the IS-MP-IA Model to the Slovene Economy and Policy Implications," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 58(2), pages 167-177.
    2. Yu Hsing, 2005. "Application of the IS-MP-IA model to the German economy and policy implications," Economics Bulletin, AccessEcon, vol. 15(5), pages 1-10.
    3. David H. Romer, 2000. "Keynesian Macroeconomics without the LM Curve," Journal of Economic Perspectives, American Economic Association, vol. 14(2), pages 149-169, Spring.
    4. Yu Hsing, 2005. "Application of the IS-MP-IA model to the Singapore economy and policy implications," Economics Bulletin, AccessEcon, vol. 15(6), pages 1-9.
    5. repec:ebl:ecbull:v:15:y:2005:i:5:p:1-10 is not listed on IDEAS
    6. Alessandro Vercelli, 1999. "The evolution of IS-LM models: empirical evidence and theoretical presuppositions," Journal of Economic Methodology, Taylor & Francis Journals, vol. 6(2), pages 199-219.
    7. Taylor, John B., 1993. "Discretion versus policy rules in practice," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 39(1), pages 195-214, December.
    8. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
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    More about this item

    Keywords

    monetary policy; IS-LM model dynamics; neutrality of the money; economic schools;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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