Title :

Oskar Lange and the Walrasian interpretation of IS-LM

Author(s) :

Rubin, Goulven [Auteur]
Lille économie management - UMR 9221 [LEM]

Journal title :

Journal of the History of Economic Thought

Pages :

285--309

Publisher :

Informa UK (Taylor & Francis)

Publication date :

2016-08

ISSN :

1042-7716

English keyword(s) :

Keynesian economics
Macroeconomics
Neoclassical school of economics
Lange
Oskar
1904‐1965
Keynes
John Maynard
1883‐1946

HAL domain(s) :

Économie et finance quantitative [q-fin]
Sciences de l'Homme et Société/Gestion et management

English abstract : [en]

A few years after the publication of The General Theory, a number of economists began to present John Maynard Keynes’s model, identified with IS‐LM, as a particular case of the Walrasian model. This view of IS‐LM has often ...
Show more >A few years after the publication of The General Theory, a number of economists began to present John Maynard Keynes’s model, identified with IS‐LM, as a particular case of the Walrasian model. This view of IS‐LM has often been rationalized by a basic syllogism: IS‐LM was invented by John Hicks, Hicks was a Walrasian, hence IS‐LM was Walrasian. But as some historians of macroeconomics have shown, this syllogism is false. Considering this confusion as an established fact, this article studies how and why IS‐LM came to be considered as Walrasian. It shows that the standard view took its roots in “The Rate of Interest and the Optimum Propensity to Consume,” a paper published by Oskar Lange in 1938, and resulted from a need to clarify the foundations of Keynes’s theory. [ABSTRACT FROM PUBLISHER]Show less >

Language :

Anglais

Peer reviewed article :

Oui

Audience :

Internationale

Popular science :

Non

Collections :

• Lille Économie Management (LEM) - UMR 9221

Source :

Harvested from HAL