IS–LM model
Modelo IS-LM
- Date
- 1936 (presentado) / 1937 (publicado) · confidence high
- Place
- Oxford, England, United Kingdom
- Credited to
- John Hicks
- Field
- Knowledge & symbols
What was discovered
At an Econometric Society conference in Oxford, Hicks presented a two-curve graphical model, investment-saving (IS) and liquidity preference-money (LM), that summarized Keynes's theory of employment, interest and money in mathematical terms. The model became the dominant framework of macroeconomic analysis for several decades.
What it led to
- Neoclassical synthesis in macroeconomics
- Modern monetary and fiscal policy based on formal models
Built on
- Keynes's General Theory of Employment, Interest and Money