J M Keynes engaged in correspondence over the IS-LM model contained in chapter 15 of the General Theory with R. Harrod and J Hicks in 1937. Keynes had no major objections. How could he? How could Keynes object to interpretations concerning his own model of IS LM in the General Theory, as laid...

J. M. Keynes versus D. Robertson in 1936-37 pits two opponents, one, J. M. Keynes, a highly skilled, sophisticated, mathematically advanced thinker against another, D. Robertson, who doesn't have even an elementary background in mathematics at the grammar school level. Basically, the...

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...