Chiarella, Carl; Flaschel, Peter; Semmler, Willi - Finance Discipline Group, Business School - 2001
We reformulate and extend the Blanchard model of output dynamics, the stock market and interest rates that studies Keynesian IS-LM analysis from the perspective of a richer array of short-term bonds. Thus investment demand now depends on Tobin's average q in the place of the real rate of...