Revision as of 17:52, 1 March 2017 edit Spurb (talk \| contribs) Extended confirmed users 1,206 edits →More advanced ← Previous edit		Revision as of 12:55, 2 March 2017 edit undo Magioladitis (talk \| contribs) Extended confirmed users, Rollbackers 908,596 edits fix Next edit →
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\|~~money supply]], but rather the [[~~Interest rate\|~~interest rate]]. Therefore, he suggests removing the LM curve and replacing it with the MP curve. ==See also==

AD–IA model: Difference between revisions