Tasa de interes e inflacion : una nota aclaratoria
The traditional IS-LM model has been used by macroeconomic textbooks to explain, amongst other things, the level and the changes in the interest rate. According to this paper, this model is irrelevant and inefficient in explaining the positive effect of a greater expected inflation rate, in relation to the nominal interest Rate. In effect, and increase in the nominal rate of interest, that is not accompanied by an increase in real income, supposes according to the IS-LM model, a contraction in the supply of real money balances or opposedly an increase in their demand (in other words, the LM curve would shift to the left, if we employed the usual graphic representation of this basic model, which shows the possible combinations of interest rates and real income, that guarantee equilibrium in the product and money markets). But it would lead nowhere to think that an increase in the expected rate of inflation would imply these alterations in the demand or supply of real money balances. Nevertheless, the author considers this model can be pertinent in explaining other sources of changes in the interest rate.
Volume (Year): (1985)
Issue (Month): 17 ()
|Contact details of provider:|| Web page: http://economia.udea.edu.co|
More information through EDIRC
|Order Information:|| Postal: Lecturas de Economía, Departamento de Economía, Calle 67, 53-108, Medellin 050010, Colombia.|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- No authors listed, 1983. "Editorial," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 9(2), pages 175-178.
- Gordon Tullock, 1983. "Editorial," Public Choice, Springer, vol. 40(1), pages 5-5, January.
- Turnovsky,Stephen J., 1977. "Macroeconomic Analysis and Stabilization Policy," Cambridge Books, Cambridge University Press, number 9780521291873, May.
- No authors listed, 1983. "Editorial," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 9(4), pages 497-501.
- A. Steven Holland, 1984. "Real interest rates: what accounts for their recent rise?," Review, Federal Reserve Bank of St. Louis, issue Dec, pages 18-29.
When requesting a correction, please mention this item's handle: RePEc:lde:journl:y:1985:i:17:p:149-156. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Carlos Andrés Vasco Correa)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.