IS-LM Stability Revisited: Samuelson was Right, Modigliani was Wrong
In Hicks’s IS-LM model, where it is assumed that production is determined in the goods marketand the interest rate is determined in the money market, when the marginal propensity to spend is greater than one, the IS has a positive slope. Modigliani (1944), Varian (1977) and Sargent (1987) determined...
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| Format: | Article |
| Language: | English |
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Pontificia Universidad Católica del Perú
2015-08-01
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| Series: | Economía |
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| Online Access: | http://revistas.pucp.edu.pe/index.php/economia/article/view/13735 |