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IS-LM model for US economy: testing in JMULTI

Author

Listed:
  • Josheski, Dushko
  • Lazarov, Darko
  • Fotov, Risto
  • Koteski, Cane

Abstract

In this paper IS-LM model, has been introduced as time series model. Standard VAR, VECM test have been applied .Three variables that we estimated were: logarithm of real GDP (q), 3 month interbank interest rate (i), real monetary base (m).VECM mechanism shows that if the system is in disequilibrium alteration in the change of interbank interchange interest rate, log of real US gdp , and monetary base will be downward 5,5%,4,6% and 0,4% respectively.

Suggested Citation

  • Josheski, Dushko & Lazarov, Darko & Fotov, Risto & Koteski, Cane, 2011. "IS-LM model for US economy: testing in JMULTI," MPRA Paper 34024, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:34024
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    File URL: https://mpra.ub.uni-muenchen.de/34024/1/MPRA_paper_34024.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    IS-LM; VAR; VECM; JMULTI;
    All these keywords.

    JEL classification:

    • N1 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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