Publication
The Korean Journal of Economic Studies
IS-LM Model and Its Role in Macroeconomics -with Lakatos's Scientific Research Program
Tae-Hee HongYear 2009Vol. 57No. 1
Abstract
IS-LM model is perhaps the prime example of cognitive dissonance ineconomics and it is problematic to many economists. This paper is concernedwith the question, why has IS-LM model persisted. It outlines and explainsthe main elements and way of thinking about IS-LM model in macroeconomicswith respect to the conception of Lakatos’s research program. It is argued thatIS-LM model can be characterized as a protective belt of the generalequilibrium research program.