Talk:IS–LM model

message: Where is Alvin Hansen in the history section? Haberstr 05:07, 13 October 2007 (UTC)
thread_title:  Hansen and History 

message: Is there a reason we were using manual HTML for this image? I've fixed it to use the correct wikimarkup; beforehand, it was stretching the article so I had to scroll right to view the whole graph. Johnleemk | Talk 16:43, 20 May 2006 (UTC)
thread_title:  Graph 

message: Does anyone else think this page should be renamed to IS-LM model?  First, the slash is confusing; second, the other models I found were named using hyphens, not slashes (AD-IA Model, for example; see my next post for info about the cap).  I am also requesting an article on the AD-AS model, which (strangely) does not have an article, and I am requesting it with the hyphen instead of a slash, following the conventions of the existing articles.  I won't move it even if we reach consensus, since I'd like to have it done by an administrator to preserve the edit history. 
-- Tuvok^Talk|Desk|Contribs  06:50, 27 November 2006 (UTC)
replies: text: Yeah, I forgot: There does not seem to be a general agreement as to whether these articles should capitalize "model" or not.  Some do, some don't.  There also is no real consistency over the entire Internet about whether the punctuation between AD and AS is a slash or a hyphen.  This has the potential to become a real Wikipedia issue. -- Tuvok^Talk|Desk|Contribs  06:56, 27 November 2006 (UTC)
thread_title:  Move 

message: I do think this article could be improved if we include the mechanics of the model, just what has been done to the Mundell-Fleming Model. __earth (Talk) 03:10, 3 April 2007 (UTC)
replies: text: Good idea! I agree, go ahead and add a section for explaining the mechanics if you like. --I (talk) 04:56, 25 November 2008 (UTC)
thread_title:  Mechanics 

message: I'm new here - hope I am following the rules. I see that the link for Price Deflator in the discussion of the LM schedule does not go to the price deflator page but instead goes to the price level page. Richard.Knox (talk) 04:37, 19 November 2008 (UTC)
replies: text: This could have gone either way--could have linked "price deflator" to GDP deflator. Instead, I changed it to talk about price level instead of the deflator, because I think that's more correct at a conceptual level (regardless of the empirical application). CRETOG8(t/c) 12:58, 19 November 2008 (UTC)
thread_title:  Typo 

message: The last paragraph of the discussion of LM Schedule contains an un matched right paren. Richard.Knox (talk)  —Preceding undated comment was added at 03:01, 2 January 2009 (UTC)
thread_title:  Typo 

message: In intro macro we were taught this model in stages; the basic "closed economy" model came first, and the implications of international trade as either a "large" or "small" economy were introduced later. It was an effective way to learn it, and I wonder if we shouldn't split off all the "adapting this part of the model for international trade" paragraphs into their own section, leaving the basic explanation simple. I would have a hard time keeping it all straight as a new reader. Therealhazel (talk) 04:48, 28 January 2009 (UTC)
thread_title: Format

message: Can someone verify for me that this edit was vandalism? Evercat (talk) 11:16, 1 April 2009 (UTC)
thread_title: Request for help

message: There should be a section on the validity, applicability and limitations of this model. E.g. what happens at low interest-rates (zero lower bound)? A Lower interest rate does not always cause people to save less, not even always to invest more. --95.116.204.176 (talk) 15:02, 23 October 2012 (UTC)
thread_title:  Limitation&Applicability&Assumptions 

message: I know this is not that important, but there is a small error in the section about the LM curve, where it is said that "As GDP is considered exogenous to the liquidity preference function, changes in GDP shift the curve. For example, an increase in the demand for money for transactions will increase interest rates through the money market, and cause the LM curve to shift to up and to the left."
Explanation: While GDP, or Y, is considered an exogenous variable on the money market, changes in it still do not shift the LM curve, since Y in on one of the two axes. An increase in GDP would increase the demand for money for transactions and therefore the interest rate, but this would graphically be represented by walking on the LM curve (in the upward/right direction), not shifting it.
I have another doubt. It is mentioned that in LM curve, Income is the dependent variable. I understand the line of logic that LM curve is derived from Liquidity preference curve and Liquidity preference curve shifts with changes in Income. Hence, for different levels of income, rate of interest in estimated (for given money supply) taking analogous values from respective Liquidity preference curves. My doubt is: isn't interest rate the independent variable in Liquidity preference curve considering speculative demand. For given Income, current rate of interest (nominal) is the key source of expectations about rise or fall in interest rates in future (For further on this refer to last paragraph from wiki page of speculative demand). Thus, interest rate influences speculative demand and income influences transaction demand so overall demand for money is a function of both income and nominal interest rate. So aren't both income and interest rate playing the role of independent variables in bringing about equilibrium in money market? Akhilgoyal19 (talk) 17:43, 24 August 2013 (UTC)
thread_title:  LM Curve 

message: I found the LM section particularly confusing.  The first reference to a graph refers using he Liquidity Preference function, which is downward sloping.  It sounded as though Liquidity Preference were the actual measurement used to determine the more abstract LM.
It took me a while (and several paragraphs) to realize that the downward sloping Liquidity Preference wasn't actually displayed; it was just an unseen intermediate step towards generating the upward-sloping LM. 
JimJJewett (talk) 18:17, 16 August 2013 (UTC)
replies: text: I have created and added a money market equilibrium diagram. I would appreciate somebody checking it for errors and/or improving it. --NilsTycho (talk) 19:39, 6 April 2014 (UTC)
thread_title:  The LM section needs some graphs 

message: EM flattens the LM. Cn we graphically show this? (Lihaas (talk) 18:55, 2 November 2013 (UTC)
thread_title:  Endogenous money 

message: Is or lm falan 223.180.162.249 (talk) 14:16, 13 April 2023 (UTC)
thread_title:  Is or lm falan 

message: https://link.springer.com/book/10.1007/978-3-030-91342-7#toc
I have stumbled upon this book. It might of interest here. 
“Furthermore, the book discusses the implications of newly discovered archival material, including a previously overlooked document showing that John Maynard Keynes himself was the first to present the IS-LM model equations in a lecture he gave on December 4, 1933. It focuses on the implications of this material in terms of understanding the evolution of Keynes’s approach from 1933 to 1937, later interpreters of his General Theory, and the ongoing debate between Keynesians and Post-Keynesians on the nature of his system. Given the revelations it presents, this book will transform the profession’s understanding of the origins of the IS-LM model and modern macroeconomics.” 86.52.76.106 (talk) 13:45, 3 September 2023 (UTC)
replies: text: That book was already discussed above.  None-the-less, in true Wikipedia fashion, subsequent to the discussion someone else dove into the article, and replaced the cranky Brady content with the false mainstream narrative. —2607:FB91:822D:8B28:A6BA:5A64:FDBE:615E (talk) 01:42, 20 September 2023 (UTC)
thread_title:  Keynes own IS/LM