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A Tautologies-Founded IS-LM Model

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  • Hiermeyer, Martin

Abstract

The paper combines five tautologies to come up with a model that is structurally similar to the IS-LM model but has five advantages vis-à-vis the IS-LM model. The model also has seven advantages vis-à-vis simple New Keynesian models such as Romer's IS-MP model or Carlin's and Soskice's IS-MR model.

Suggested Citation

  • Hiermeyer, Martin, 2018. "A Tautologies-Founded IS-LM Model," MPRA Paper 83681, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:83681
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    File URL: https://mpra.ub.uni-muenchen.de/83681/1/MPRA_paper_83681.pdf
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    References listed on IDEAS

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    1. Mark Gertler & Jordi Gali & Richard Clarida, 1999. "The Science of Monetary Policy: A New Keynesian Perspective," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1661-1707, December.
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    3. Carl E. Walsh, 2002. "Teaching Inflation Targeting: An Analysis for Intermediate Macro," The Journal of Economic Education, Taylor & Francis Journals, vol. 33(4), pages 333-346, December.
    4. Goodhart, C. A. E., 2017. "The determination of the money supply: flexibility versus control," LSE Research Online Documents on Economics 84209, London School of Economics and Political Science, LSE Library.
    5. Heijdra, Ben J., 2017. "Foundations of Modern Macroeconomics," OUP Catalogue, Oxford University Press, edition 3, number 9780198784135.
    6. Cochrane, John H., 2017. "The new-Keynesian liquidity trap," Journal of Monetary Economics, Elsevier, vol. 92(C), pages 47-63.
    7. Mark Gertler & Jordi Gali & Richard Clarida, 1999. "The Science of Monetary Policy: A New Keynesian Perspective," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1661-1707, December.
    8. David H. Romer, 2000. "Keynesian Macroeconomics without the LM Curve," Journal of Economic Perspectives, American Economic Association, vol. 14(2), pages 149-169, Spring.
    9. C. A. E. Goodhart, 2017. "The Determination of the Money Supply: Flexibility Versus Control," Manchester School, University of Manchester, vol. 85, pages 33-56, September.
    10. Peter Bofinger & Eric Mayer & Timo Wollmershäuser, 2006. "The BMW Model: A New Framework for Teaching Monetary Economics," The Journal of Economic Education, Taylor & Francis Journals, vol. 37(1), pages 98-117, January.
    11. John B. Taylor, 2000. "Teaching Modern Macroeconomics at the Principles Level," American Economic Review, American Economic Association, vol. 90(2), pages 90-94, May.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Teaching of economics; fiscal policy; monetary policy;
    All these keywords.

    JEL classification:

    • A2 - General Economics and Teaching - - Economic Education and Teaching of Economics
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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