IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01667393.html
   My bibliography  Save this paper

Oskar Lange and the Walrasian interpretation of IS-LM

Author

Listed:
  • Goulven Rubin

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

Abstract

A few years after the publication of The General Theory, a number of economists began to present John Maynard Keynes's model, identified with IS‐LM, as a particular case of the Walrasian model. This view of IS‐LM has often been rationalized by a basic syllogism: IS‐LM was invented by John Hicks, Hicks was a Walrasian, hence IS‐LM was Walrasian. But as some historians of macroeconomics have shown, this syllogism is false. Considering this confusion as an established fact, this article studies how and why IS‐LM came to be considered as Walrasian. It shows that the standard view took its roots in "The Rate of Interest and the Optimum Propensity to Consume," a paper published by Oskar Lange in 1938, and resulted from a need to clarify the foundations of Keynes's theory. [ABSTRACT FROM PUBLISHER]

Suggested Citation

  • Goulven Rubin, 2016. "Oskar Lange and the Walrasian interpretation of IS-LM," Post-Print hal-01667393, HAL.
    • Handle: RePEc:hal:journl:hal-01667393
    DOI: 10.1017/s1053837216000341
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michel De Vroey, 2020. "Should the History of Macroeconomics Steer Cear of the Fray or be Partisan? A Critical Essay on Banks and Finance in Modern Macroeconomics by B. Ingrao and C. Sardoni," LIDAM Discussion Papers IRES 2020028, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-01667393. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.