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  • Introduction: Seven Decades of the IS-LM Model / michel de vroey and kevin d. hoover  1
    Keynote Address to the 2003 HOPE Conference: My Keynesian Education / robert e. lucas jr.  12
    What Was Lost with IS-LM / roger e. backhouse and david laidler  25
    The History of Macroeconomics Viewed against the Background of the Marshall-Walras Divide / michel de vroey  57
    The IS-LM Model and the Liquidity Trap Concept: From Hicks to Krugman / mauro boianovsky   92
    IS-LM-BP: An Inquest / warren young and william darity jr.  127
    James Tobin and the Transformation of the IS-LM Model / robert w. dimand  165
    Patinkin on IS-LM: An Alternative to Modigliani / goulven rubin  190
    IS-LM and Monetarism / michael d. bordo and anna j. schwartz  217
    How Have Monetary Regime Changes Affected the Popularity of IS-LM? / scott sumner  240
    Money and the Transmission Mechanism in the Optimizing IS-LM Specification / edward nelson  271
    The Strange Persistence of the IS-LM Model / david colander  305
    Contributors  323
    Index  327
  • Roger E. Backhouse

    Bradley Bateman

    Mauro Boianovsky

    Michael D. Bordo

    David Colander

    Robert W. Dimand

    Robert E. Lucas

    Edward Nelson

    Goulven Rubin

    Scott Sumner

    Warren Young

    William A. Darity

    David Laidler

    Anna J. Schwartz

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  • Description

    For some twenty-five years after the end of the Second World War, the IS-LM model dominated macroeconomics. Inspired by the work of John Maynard Keynes, this model demonstrates the relationship among savings, income, investments, and interest rates, showing the point at which the interaction of these elements produces “equilibrium” in an economy. With the advent of the new classical macroeconomics in the early 1970s, the dominance of the IS-LM model was effectively challenged. While no longer central to the graduate training of most macroeconomists or to cutting-edge macroeconomic research, the IS-LM model continues to be a mainstay of undergraduate textbooks, to find wide use in applied macroeconomics, and to lie at the conceptual core of most government and commercial macroeconometric models. This volume, the annual supplement to History of Political Economy, explores the rise, the fall, and the persistence of the IS-LM model. In addition to presenting papers from the History of Political Economy conference held at Duke University in April 2003, the volume includes the text of an address delivered at the conference by Nobel laureate Robert E. Lucas Jr., one of the central players in the intellectual movement that dethroned the IS-LM model.

    Contributors. Roger E. Backhouse, Mauro Boianovsky, Michael Bordo, David Colander, William Darity Jr., Michel De Vroey, Robert W. Dimand, Kevin D. Hoover, David Laidler, Robert E. Lucas Jr., Edward Nelson, Goulven Rubin, Anna Schwartz, Scott Sumner, Warren Young

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