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The IS-LM functions and the ‘neoclassization” of Keynes’s thought

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  • Luiz Antonio de Oliveira Lima

Abstract

This article firstly analyses the antikeynesian features of “IS-LM” model as developedby Hicks, as well as the extensions of this model in the version of Pigou and Modigliani.In a second stage, it analyses the internal inconsistencies of the model, as pointed outby Hicks himself, when it fits together a flow relation which is expressed in the IS curve witha stock or balance sheet relation, as expressed by the LM curve. JEL Classification: B21; E12.

Suggested Citation

  • Luiz Antonio de Oliveira Lima, 1989. "The IS-LM functions and the ‘neoclassization” of Keynes’s thought," Brazilian Journal of Political Economy, Center of Political Economy, vol. 9(2), pages 193-208.
    • Handle: RePEc:ekm:repojs:v:9:y:1989:i:2:p:193-208:id:1608
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    Keywords

    ISLM model; Keynesianism; history of economic thought;
    All these keywords.

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory

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