What went wrong with IS-LM/AS-AD analysis--and why? From: Eastern Economic Journal | Date: January 1, 1997| Author: Ingo Barens | Copyright Eastern Economic Association Winter 1997. Provided by ProQuest LLC.Copyright information

"... all novelty is but oblivion" Francis Bacon

The AS-AD approach used in macroeconomic textbooks to analyze the working of a market economy has come under increasing fire [Barro, 1994; Colander, 1986; 1992; 1993; 1994/1995; 1995; Clower, 1994; Nevile and Rao, 1996]. But these recent criticisms of the AS-AD approach, and especially of the conventional aggregate demand curve, are but the latest stage of an ongoing but largely overlooked debate, starting with Rabin and Birch [1982], th...

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