Post-Keynesian interpretation of the traditional IS-LM model
Neoclassical interpretation of Keynes' thoughts based on the IS-LM model are well known and widely accepted, mainly because of the rather simple and straightforward mathematical components describing the relations between the effective demand and the liquidity preference theory. Despite that, this interpretation suppressed Keynes's novelty and contribution to economic theory. Further development and expansion of the banking services created new platform for the post-keynesian monetary theory of the production, which is developed from the rigorous analysis of the banking money and production. Bernard Schmitt's contribution to further development of the Keynes theory is without doubt enriching of the modern economic thinking, which is important in the light of the rapid development of the banking systems during the last 25 years.
B. Hosoff, Ekonomický ústav SAV, Sancová 56, 811 05 Bratislava 1, Slovak Republic
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