The IS-LM functions and the ‘neoclassization” of Keynes’s thought

Vol. 9 No. 2 (1989)

Apr-Jun / 1989
Published April 1, 1989
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Lima, Luiz Antonio de Oliveira. 1989. “The IS-LM Functions and the ‘neoclassization” of Keynes’s Thought”. Brazilian Journal of Political Economy 9 (2):193-208.

The IS-LM functions and the ‘neoclassization” of Keynes’s thought

Luiz Antonio de Oliveira Lima
Fundação Getulio Vargas – São Paulo/SP, Brasil.
Brazilian Journal of Political Economy, Vol. 9 No. 2 (1989), Apr-Jun / 1989, Pages 193-208


This article firstly analyses the antikeynesian features of “IS-LM” model as developed
by Hicks, as well as the extensions of this model in the version of Pigou and Modigliani.
In a second stage, it analyses the internal inconsistencies of the model, as pointed out
by Hicks himself, when it fits together a flow relation which is expressed in the IS curve with
a stock or balance sheet relation, as expressed by the LM curve.

JEL Classification: B21; E12.

Keywords: ISLM model Keynesianism history of economic thought