Comparing Keynes's Mathematical IS-LP(LM) Model from His Student Lectures in 1933 -1935 with the Mathematical IS-LP(LM) Model in the General Theory in Chapters 15 and 21: The Model is All There in the General Theory in Chapter 21
21 Pages Posted: 17 Aug 2017
Date Written: August 15, 2017
J M Keynes’s IS-LP(LM) model was first introduced in his December,1933 -1935 student lectures. Keynes’s IS-LP(LM) model in the General Theory is contained in chapter 15 on pp.199-203, 208-09 where it is summarized and briefly analyzed. It is more comprehensively analyzed in chapter 21 on pp.298-303. The General Theory versions in chapters 15 and 21 are much more mathematically detailed and explicit than the version in his 1933-35 student notes.
The work of Dimand and Rubin, while superior to the rest of the literature on IS-LM over the last 80 years, suffers from severe omissions due to their overlooking the work contained in chapters 15 and 21 of the General Theory.
Keywords: Harrod, Hicks, IS-LM, Liquidity preference, Patinkin, chapter 15, pp.180-182 of GT, chapter 21, simultaneous equations
JEL Classification: B10, B12, B14, B16, B20, B22
Suggested Citation: Suggested Citation