The economic crisis gave a lesson to the nation of Indonesia that some macro economic indicators are not yet a satisfactory assurance that Indonesia's strong economic conditions. As the economy is felt too slow than it should be so with fiscal and monetary policy proper is expected to stimulate...

Macroeconomists are increasingly using a New IS-LM model to discuss the economy's response to shocks and the design of monetary policy rules. This new model has better microfoundations than earlier IS-LM models and explicitly incorporates expectations about future economic conditions. Price...

The object of this paper is to demonstrate the possible risks of quantitative easing in the long run. The analysis is conducted in the conventional framework of IS-LM curves in a sequential model, which assumes that the independence of supply and demand curves does not necessarily hold. It is...

Even if the IS-LM model is one of the backbones in the Keynesian economics, its explanation in textbooks has a few conceptual as well as expressional errors. Take the demand for money (Md) for example. Almost all textbook authors, including Keynes himself, explain that Md increases as the...