Chiarella, Carl; Flaschel, Peter; Franke, Reiner; … - In: Bulletin of the Czech Econometric Society 8 (2001)
The paper reconsiders an influential model by Blanchard (1981) that extends the textbook ISLM framework by including among the financial assets, besides money and short-term bonds, also long-term bonds and equities. Aggregate demand is supposed to vary with Tobin's (average) q, rather than the...