Publication: Journal of Economic Education
Volume: Volume 34, No. 3
Issue: Summer 2003
Pages: 241-262
Author(s): Akila Weerapana (Wellesley College)
Address (Principal Author):Akila Weerapana
Department of Economics
Wellesley College
106 Central Street
Wellesley, MA 02481
Phone: (781) 283-2300
Fax: (781) 283-2177
(after May 31, 2003)
Internet Address (Principal Author): aweerapana@wellesley.edu
Title: Intermediate Macroeconomics Without the IS-LM Model
Abstract: The author compares the performance of the aggregate demand-price adjustment (AD-PA) or the aggregate demand-inflation adjustment (AD-IA) model with the IS-LM model: the ineffectiveness of monetary policy in stimulating the 1990s Japanese economy and the rapid switch of the U.S. Federal Reserve from contractionary policy to expansionary policy in 2001. He finds that the AD-PA model is superior for classroom use.
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