IS-LM Policy Implications
IS-LM is the macroeconomic model developed by Hicks and Hansen that shows how the good market interacts with the loanable funds or money market. The IS curve shows the different combinations of the rate of interest and national income that gives product market equilibrium. The LM curve shows the different combinations of the rate of interest and national income that gives money market equilibrium. IS-LM policy implication deals with the effectiveness of the fiscal and monetary policy.
Factor affecting the effectiveness of policy
Interest-inelastic IS curve and Monetary Policy
Interest-inelastic IS curve and Fiscal Policy
Interest -elastic IS curve and Monetary Policy
Interest-elastic IS curve and Fiscal Policy
Interest-inelastic LM curve and Fiscal Policy
Interest-inelastic LM curve and Monetary Policy
Interest-elastic LM curve and Fiscal policy
Interest-elastic LM curve and Monetary policy
Combined analysis of IS-LM
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IS-LM: policy implication and policy effectiveness from Rohan Byanjankar
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