Subject: | |
From: | |
Date: | Tue Feb 13 13:44:42 2007 |
Content-Type: | text/plain |
Parts/Attachments: |
|
|
Just a point of history. The "dynamic approach" to IS-LM is present in the
work of Samuelson (1941), Modigliani (1944) and Klein (1947) in the form of
dynamic systems based upon both differential and difference equations in the
case of Samuelson (1941), that later became Ch IX of "Foundations", and in
the dynamical model (difference equations) in Modigliani (1944: 62-64, eg.
p. 63, equations 2.1-2.6).
But, as Dave Colander correctly notes, it is difficult to "hang" things such
as difference and differential euqations onto a two-dimensional notional
diagram, and thus the textbook writers never bothered with the richer
dynamic framework provided by Samuelson, Modigliani and Klein, until
insightful authors such as George Horwich realized that something important
was missing from the original Harrod-Meade-Hicks euqational-diagrammatic
SILL framework....
Warren Young
|
|
|