The Theory of the IS-LM Curve and the IS-LM Model

Vinzenz von Holle ()

Chapter Chapter 6 in New Economic Theory, 2024, pp 87-106 from Springer

Abstract: Abstract The IS function is an economic model of macroeconomics and is also often called the IS equation or IS curve. It represents the set of all possible combinations of interest rate and national income where there is equilibrium in the goods market. Together with the LM function, it forms the so-called IS-LM model. This model represents the most important interpretation of Keynesian theory.

Date: 2024
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DOI: 10.1007/978-3-658-45136-3_6

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