ISLM: The Engine Room

Farrokh K. Langdana
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Farrokh K. Langdana: Rutgers University–Newark and New Brunswick

Chapter Chapter 7 in Macroeconomic Policy, 2022, pp 155-184 from Springer

Abstract: Abstract The preceding chapters have included definitions and analyses of discrete components and aspects of the macroeconomy. We discussed the goods market and the multiplier effect in some detail, before exploring overheating and soft and hard landings using AD-AS analysis. The previous chapter included a fairly detailed study of calamitous hyperinflations and ended with a discussion of the intertemporal and expectational influences underlying long-term interest rates. Now the powerful ISLM model discussed in this chapter will synthesize all the disparate diagrams and linkages discussed earlier into one logical unifying framework.

Date: 2022
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DOI: 10.1007/978-3-030-92058-6_7

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