An Improved IS-LM Model To Explain Quantitative Easing

Martin Hiermeyer

MPRA Paper from University Library of Munich, Germany

Abstract: The paper combines the IS-LM model with a Tobin-style ‎analysis of the banking system. As suggested by Krugman, the resulting model has great predictive power. It can explain quantitative easing and its effect on the economy, helicopter money and money creation by banks. Also, it is free of the normal shortcomings of the IS-LM model.

Keywords: Monetary Policy; Money Supply (search for similar items in EconPapers)
JEL-codes: E5 (search for similar items in EconPapers)
Date: 2019-02-26
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:92394

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