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Wednesday, October 5, 2011

IS LM Keynesian Links

Krugman Explains IS-LM

The BL-MP Model

 More on BL-MP

 IS-LM Watch: In the Country of the One-Eyed, the Self-Blinded Man Is in Bad Shape, or Something Department

The Tribal Dislike of John Hicks and IS-LM: History of Economic Thought Edition

 Hoisted from Comments: The Tribal Dislike of John Hicks and IS-LM

Something About Macro

Krugman: "I’d guess that at least half of university macroeconomists are either real business cycle types or take a Taylor-like position that they may be Keynesian in theory, but they oppose anything Keynesian in practice"

Krugman must be thinking about research macroeconomists in graduate schools.  The undergraduate textbooks never developed much interest in the real business cycle (RBC) theory.  Perhaps that is because RBC has no good applications and cannot be explained in simple terms that make any sense.  It requires too much mathematical abstraction to make sense and undergraduates would not be convinced without some stories to back it up. 

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