On 'Money' in ISLM and AD/AS Models

Preprint OPEN
T.K. Rymes; Colin Rogers;
(1998)

Hicks's ISLM model interpretation of Keynes's theory is subject to much controversy. In this paper, we focus upon the 'real balance' effect and its role in ISLM and AD/AS analyses. We shall argue that ISLM and AD/AS require 'nominal anchors'. We live in a world where, i... View more
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