Une note sur la règle du taux d’intérêt et le rôle de la courbe LM

Dai, Meixing (2003): Une note sur la règle du taux d’intérêt et le rôle de la courbe LM.

Abstract

This note takes part in the debate on the topic “a macroeconomics without LM”. It shows that, when the central bank does not control directly the interest rates on the money and financial markets, LM curve has another role to play than to determine in an endogenous way the money supply when the monetary policy is specified in terms of interest rate rule. In effect, flexible price LM curve makes it possible to specify the expected inflation rate dynamics within an analytical framework generally adopted by the economists defending the idea of abandoning LM in the teaching of the macroeconomics in first cycle.

• Item Type: MPRA Paper
• English Title: A note on the interest rate rule and the role of LM curve
• Language: French
• Keywords: Interest rate rule, flexible price LM curve, monetary policy, expected inflation rate dynamics, macroeconomic stability
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E43 - Interest Rates: Determination, Term Structure, and Effects; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E51 - Money Supply ; Credit ; Money Multipliers; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy

References

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