All of J .M .Keynes's earlier 1933-1935 versions of his IS-LM(LP) model contained a serious inconsistency. These earlier models all incorporated both actual and expected outcomes in the same model. The units did not match up. Keynes solved this problem by himself by splitting off the D-Z model...

There is no IS-LM (LP) model of Keynes's theory of the rate of interest and liquidity preference in chapter 18 of the General Theory. Keynes made it very clear in Section IV of chapter 15 that he was going to give a brief summary of his theory and application of the model there while he would...

There is no IS-LM (LP) model of Keynes's theory of the rate of interest and liquidity preference in chapter 18 of the General Theory. Keynes made it very clear in Section IV of chapter 15 that he was going to give a brief summary of his theory and application of the model there while he would...

Keynes provided two versions of his IS-LM(LP) model in the General Theory. The first version was the verbal, English, literary, prose version contained in chapter 18 of the General Theory. This version was targeted for economists, such as Joan Robinson and Dennis Robertson, who could not grasp a...

Keynes's original IS-LM (LP) model of 1933, although a major conceptual breakthrough, was technically and mathematically flawed because Keynes incorporated realized and expected variables in the same set of equations.Keynes had solved this problem by early 1936 by formulating a completely new...

Krugman has recently revitalized IS-LM with a number of succinct analytical pieces on his blog. The reverberations were remarkable. Economists, however, are known often not grasp the full content of their own and, a fortiori, of others' models. This happened to Keynes in the days of high theory...

This paper intends to discuss some problematic properties IS-LM and loanable funds together have when dealing with fiscal deficits. Many others have focused on its assumptions for criticism of IS-LM, but I will mainly focus on its fundamental modelling nature. To say more specifically, I will...