Keynesian Macroeconomics without the lm curve

von Hagen, Ju
¨rgen.
1995. “Inflation and Mon-
etary Targeting in Germany,” in
Inflation Targets.
Leiderman, Leonardo, and Lars E. O. Svensson,
eds. London: Centre for Economic Policy Re-
search, pp. 107–121.
Keynesian Macroeconomics without the LM Curve
169

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170
Journal of Economic Perspectives

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Document Outline

• Keynesian Macroeconomics without the LM Curve
  • The IS-LM Model
  • The IS-MP-IA Model
    • Monetary Policy
    • Advantage 1.
    • Advantage 2.
    • Advantage 3.
    • The IS-MP and AD-IA Diagrams
    • Advantage 4.
    • Advantage 5.
    • Advantage 6.
    • The Money Market
    • Advantage 7.
    • Advantage 8.
    • The Open Economy
    • Advantage 9.
    • Advantage 10.
    • Advantage 11.
  • Other Possibilities
    • An Upward-Sloping MP Curve
    • An Expectations-Augmented Aggregate Supply Curve
    • A Money Market Equilibrium Curve
    • A More Complicated View of Financial Markets
  • Conclusion
  • References