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arXiv · 1203.1020

Relaxation Oscillations in New IS-LM Model

Barbora Volná
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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.

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Barbora Volná. 2012-03-05. Relaxation Oscillations in New IS-LM Model. https://doi.org/10.1080/00036811.2015.1026336

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