Critique of IS-LM: fiscal deficits, loanable funds, Keynesian Cross and IS-LM

This paper intends to discuss some problematic properties IS-LM and loanable funds together have when dealing with fiscal deficits. Many others have focused on its assumptions for criticism of IS-LM, but I will mainly focus on its fundamental modelling nature. To say more specifically, I will argue that ordinary IS-LM analysis is in contradictory nature to simultaneous equilibrium system, and therefore loanable funds.

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Year of publication:	2014-09-21
Authors:	Kim, Minseong
Institutions:	Volkswirtschaftliche Fakultät, Ludwig-Maximilians-Universität München
Subject:	IS-LM \| loanable funds \| budget deficits \| fiscal policy \| fiscal multiplier \| simultaneous equilibrium

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Extent:	application/pdf
Series:	MPRA Paper.
Type of publication:	Book / Working Paper
Classification:	B22 - Macroeconomics ; E12 - Keynes; Keynesian; Post-Keynesian ; E21 - Consumption; Saving ; E22 - Capital; Investment (including Inventories); Capacity ; E43 - Determination of Interest Rates; Term Structure Interest Rates
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011113048