IS-LM Macroeconomic Equilibrium
IS-LM 모형
A standard macroeconomic framework synthesizing real goods market equilibrium (IS) and monetary financial market equilibrium (LM) to determine aggregate output and nominal interest rates simultaneously.
| Field | Economics |
|---|---|
| Level of analysis | Macro · Structures & Institutions |
| Paradigm | Rational Choice Systems Theory |
| Key figures | 👤 John Hicks (존 힉스) 👤 Alvin Hansen (앨빈 한센) |
| Year | 1937 |
Key Claims
John Hicks and Alvin Hansen formalized Keynes’s General Theory into a dual-market equilibrium system. The downward-sloping IS curve depicts combinations of national income and interest rates where investment equals savings; the upward-sloping LM curve depicts where money demand equals fixed money supply. The intersection determines general equilibrium output and interest rates, providing a foundational apparatus to evaluate fiscal multipliers, monetary policy transmission, and crowding-out effects.
Further Reading
- Hicks, J. R. (1937). Mr. Keynes and the “Classics”; A suggested interpretation. Econometrica, 5(2), 147–159.
- Hansen, A. H. (1953). A Guide to Keynes. McGraw-Hill.
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