This paper provides a somewhat intertemporal microfoundation for IS-LM in an economy where there is a monopoly issuer … is justified by "real bills doctrine" of central bank operations. The resulting IS-LM model from fully intertemporal … microfoundation requires components of IS-LM to be interpreted differently, and some of the results are qualitatively different …

to extend the IS-LM model devised by Hicks (1937), to incorporate American monetary policy innovations. This updated … model, unlike IS-LM, takes into account that the FED administers the short-term interest rate, not monetary supply, which is … endogenous. On the other hand, so as to address quantitative easing, a long-term bond market is added to the IS-LM —in which …

Even if the IS-LM model is one of the backbones in the Keynesian economics, its explanation in textbooks has a few … interest rate is fixed by the central bank. Some economists even use the IS-MP model instead of the traditional IS-LM. These …

IS-LM model. Finally, we show how directed search can be combined with costly price adjustments to generate a forward …

This paper attempts to make a case of “sub-market interest rate” using the IS-LM framework. The argument is that when …

conducted in the conventional framework of IS-LM curves in a sequential model, which assumes that the independence of supply and …

several stabilization policies. As a byproduct, the model provides a microfoundation for the IS-LM model and an explanation …