In this paper, the relevancy of the classic analysis’ model of the Rational Expectations School (RES) is reexamined; mainly in the concerning to the tradeoff’s vision between the product and inflation originally postulated by Robert Lucas Jr. For such effect, a historical recount of the ideas...

In this paper, we have empirically tested the performance of the P Star model in the Mexican economy with data of 1985:4–2007:4 period. It is shown that long run equilibrium relationship works as expected according to the model. Besides, the error correction model constructed by using the gap...

In this paper a critical analysis of the IS-LM model is made. Previously, the backgrounds, general characteristics and logic-formal expression of the basic model are examined. With this support and some diagrams it is shown that the model contains limitations as analytical instrument. Among them...