How J M Keynes's Mathematical IS-LP (LM) Model in the General Theory in Part IV of Chapter 21 Was Overlooked by the Economics Profession
37 Pages Posted: 6 Sep 2017 Last revised: 21 Sep 2017
Date Written: September 2, 2017
Keynes created, developed, taught and applied his version of the IS-LM model between Dec. 1933 and February 1936 when the General Theory appeared in print. Keynes used a terminology that substituted Liquidity Preference (LP) for the later designations used by Hicks, LL, and Hansen’s LM. The question that remains to be answered is how could the entire economics profession, worldwide, fail to recognize Keynes’s clear cut mathematical model that was contained in chapter 15, summarized briefly in Section IV of chapter 15, and then presented in great detail in Section IV of chapter 21 of the General Theory.
Keywords: Harrod, Hicks, IS-LM , Liquidity preference, Patinkin, chapter 15, pp.180-182 of GT, chapter 15, chapter 21
JEL Classification: B10, B12, B14, B16, B20, B22
Suggested Citation: Suggested Citation