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This model is further advanced in higher levels of undergraduate studies.
[[David Romer]] proposed in 2000 that the LM curve be replaced in the [[IS–LM]] model.<ref>{{cite journal |last=Romer |first=David |year=2000 |title=Keynesian Macroeconomics without the LM Curve |journal=[[Journal of Economic Perspectives]] |volume=14 |issue=2 |pages=149–169 |doi=10.1257/jep.14.2.149 |url=http://www.nber.org/papers/w7461.pdf |doi-access=free }}</ref> Instead, Romer suggested that although the Federal Reserve uses [[open market operation]]s to impact the federal funds rate, they are not targeting [[money supply]], but rather the [[interest rate]]. Therefore, he suggests removing the LM curve and replacing it with the [[IS/MP model|MP curve]].
==See also==
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