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Line 24: 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 }}</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 MP curve. LM Curve \|journal=[[Journal of Economic Perspectives]] \|volume=14 \|issue=2 \|pages=149–169 \|doi=10.1257/jep.14.2.149 }}</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 MP curve. ==See also==

AD–IA model: Difference between revisions