ABSTRACT
This article firstly analyses the antikeynesian features of “IS-LM” model as developed by Hicks, as well as the extensions of this model in the version of Pigou and Modigliani. In a second stage, it analyses the internal inconsistencies of the model, as pointed out by Hicks himself, when it fits together a flow relation which is expressed in the IS curve with a stock or balance sheet relation, as expressed by the LM curve.
KEYWORDS:
ISLM model; Keynesianism; history of economic thought
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