These are very good videos. Very clear and very well explained. But my sense is that Hicks the Elder together with his Post-Keynesian colleagues were correct. The ISLM model is a rather crude oversimplification and certainly has little to do with Keynes' own presentation in the GT. Even if we accept an upward sloping LM curve too much of this relies on expectations which cannot be factored in. There's also the dubious assumption that labour markets are in equilibrium. But thanks for the videos.
@lostmy1
13 жыл бұрын
Interesting question. It is higly likely. It will change the slope of the IS curve. And it becomes more complicated to explain. It is easier to concentrate on the autonomous change - we more or less get the same result,
@Smohan8892
13 жыл бұрын
is the decrease in consumer confidence and investor confidence represented by a decrease in the marginal propensity to consume and a decrease in the marginal propensity to invest?
@pilkingtonphil
12 жыл бұрын
@Smohan8892 That's the problem with these models. There is no variable allowing for levels of confidence. I think this makes them quite misleading. Years after he invented the ISLM J.R. Hicks admitted as such. Google: 'IS-LM: An Explanation' if you're interested. Better to get rid of it, I think... It's done more harm than good.
@knallbirne3000
12 жыл бұрын
Hey Dr.Waterballoon its you !
@knallbirne3000
12 жыл бұрын
@ohhboi888 hey check out that guys videos, they are really great as well /user/economicsfun
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