A note on IYLM, ISLM and General Theory-compatible modelling

Angel Asensio ()
Additional contact information
Angel Asensio: CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: In a recent article titled 'IYLM: a General Theory-compatible replacement to ISLM', Roderick O'Donnell and Colin Rogers (2016, Cambridge J. of Econ. 40(1), 349-364) offer a model claimed to be 'a representation of the GT's central general propositions' substantially different from the ISLM version. In this short note, it is shown that: a) the IY equation (product market equilibrium condition) is mis-specified, b) once the additional ‘overall equilibrium condition' i = mec is added, the IY-LM model is formally an IS-LM model. It is argued furthermore that the effects of the entrepreneurs' long-term expectations and of the state of liquidity preference can be made explicit in the investment and money demand functions to account for those highly Keynesian features within the IS-LM framework.

Keywords: ISLM; IYLM; Keynes; macroeconomics; model (search for similar items in EconPapers)
Date: 2017-10-17
New Economics Papers: this item is included in nep-mac and nep-pke
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01618276
References: Add references at CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-01618276/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-01618276

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().