D. Patinkin and R.W. Clower belong to the first criticists of the model IS-LM, and they have revealed its theoretical weaknesses. It was in the half of the sixties of the 20 century, i. e. at the time when there was nobody to make the effectiveness of the Keynes's policies dubious. These...

In this paper the stability of an inflationary process is examined. A dynamic model of the inflation has been developed based on the quantity theory of money. Some theorists say that any rate of inflation other than zero is inherently instable. They say that as people become aware of the fact of...