- Subject index
Interest in economics is at an all-time high. Among the challenges facing the nation is an economy with rapidly rising unemployment, failures of major businesses and industries, and continued dependence on oil with its wildly fluctuating price. Economists have dealt with such questions for generations, but they have taken on new meaning and significance.Tackling these questions and encompassing analysis of traditional economic theory and topics as well as those that economists have only more recently addressed, 21st Century Economics: A Reference Handbook is a must-have reference resource.Key FeaturesProvides highly readable summaries of theory and models in key areas of micro and macroeconomics, helpful for students trying to get a "big picture" sense of the fieldIncludes introductions to relevant theory as well as empirical evidence, useful for readers interested in learning about economic analysis of an issue as well for students embarking on research projectsFeatures chapters focused on cutting-edge topics with appeal for economists seeking to learn about extensions of analysis into new areas as well as new approaches Presents models in graphical format and summarizes empirical evidence in ways that do not require much background in statistics or econometrics, so as to maximize accessibility to students.
Chapter 33: IS-LM Model
The birth of modern macroeconomics is often credited to John Maynard Keynes (1881–1946) and his classic 1936 book The General Theory of Employment, Interest and Money. Keynes's agenda in 1936 was twofold. First, he wanted to save the discipline of economics from being completely dismissed and ridiculed by policy makers and by the general public who were fed up with the neoclassical laissez-faire policy advice that dominated the Great Depression era of the 1920s and the 1930s. Second, Keynes feared the rapid political shift to the far left in Western Europe and the growing sympathy for and admiration of the ideals promoted by communism, not just by the working class but by a certain segment of the bourgeoisie. As a matter of ...