King, Robert G. - In: Journal of Economic Perspectives 7 (1993) 1, pp. 67-82
The IS-LM model has no greater prospect of being a viable analytical vehicle for macroeconomics in the 1990s than the Ford Pinto has of being a sporty, reliable car for the 1990s. Because of its treatment of expectations, the IS-LM model, as traditionally constructed and currently used, is a...