I have to admit that I have rarely used the IS-LM model since I became interested in economics. Instead, I find the AD-AS model much more useful. Of course, this does not mean that there is a major theoretical flaw in the IS-LM model. Rather, I think that the inferences that economists make by looking […]
All posts tagged nominal expenditures
IS-LM is not a useful model
Posted by kgorgen on September 18, 2021
https://www.themoneymischief.com/is-lm-is-not-a-useful-model/
Random thoughts on economics
I think most people understand the supply and demand less than we think. That’s because supply and demand are more confusing and complex than what is taught in mainstream EC101 lectures today. Maybe you don’t think so, but I do. Suppose we asked students who have already taken EC101&102: “Oil prices fell. For this reason, […]
Posted by kgorgen on June 13, 2021
https://www.themoneymischief.com/random-thoughts-on-economics/
