IS-LM Model for the US Economy: Testing in JMULTI
28 Pages Posted: 10 Oct 2011 Last revised: 18 Oct 2011
Date Written: October 10, 2011
In this paper IS-LM model, has been introduced as time series model. Standard VAR, VECM test have been applied. Three variables that we estimated were: logarithm of real GDP (q), 3 month interbank interest rate (i), real monetary base (m). VECM mechanism shows that if the system is in disequilibrium alteration in the change of interbank interchange interest rate, log of real US gdp, and monetary base will be downward 5,5%, 4,6% and 0,4% respectively.
Keywords: IS-LM, VAR, VECM, JMULTI
JEL Classification: E60, C87
Suggested Citation: Suggested Citation