IS and LM curves, their characteristics, and limitations to understand macroeconomic equilibrium in goods and money markets.

But if we eliminate the LM curve, as Blanchard suggests, then most students will assume the graph on the left shows what happened during late 2007 and early 2008. It will look like monetary ...

The "IS-LM" model provides the typical textbook framework to analyze the characteristics of the economy that determine the effectiveness of monetary and fiscal policy. The author provides a graphical ...