----------------- HES POSTING ----------------- 
 
In response to Robert Leeson: 
 
It is precisely not the case, in the 'Keynesian' world for which the IS/LM model and hence
the AD curve is constructed, that any causal nexus exists between M and P. The IS and LM
components of the story are each 'fixprice' models (as Hicks called them). Hence a 'mental
experiment' in which one analyses the logical consequences of changing M whilst P remains
constant is entirely proper.
 
Anthony Waterman 
Boston College 
 
------------ FOOTER TO HES POSTING ------------ 
For information, send the message "info HES" to [log in to unmask]