Relaxation Oscillations in New IS-LM Model
arXiv:1203.1020 · doi:10.1080/00036811.2015.1026336
Abstract
In this paper, we create new version of IS-LM model. The original IS-LM model has two main deficiencies: assumptions of constant price level and of strictly exogenous money supply. New IS-LM model eliminates these deficiencies. In the second section, we prove the existence of relaxation oscillations in this new IS-LM model.
arXiv comment20 pages, 10 figures