Author

  • Amaresh Das

    • College of Business, Southern University New Orlean, USA
    • United States

Abstract

Our comment revisits Poole’s popular exposition of the IS-LM model and proceeds to extend the discussion to best derive the optimal monetary policy rule. The key assumption is that the economy is closed with no transactions in goods and capital. This will help us better understand the basic working of the macro economy.

Keywords

References

  • Bouquet, O., Boucher, S. & Logos, G. (2004). Introduction to Stochastic Learning Theory: Advanced Lectures on Machine Learning. Lecture Notes on Artificial Intelligence , 3176, 169-207.
  • Boyd, S. & Vandenberg, H. L. (2004). Convex Optimization, Cambridge University Press, Cambridge
  • Das, A. (2010). Revisiting Sub-optimality of the Decentralized Decision Making: A Note. Journal of Management Research , 2(1), 1-8.
  • Hastie, T., Tibshirani, R. & Friedman, J. (2008). Data Mining, Inference and Predict, 2nd edition, Springer Series in Statistics, Germany.
  • King, R. G. (1993). Will the New Keynesian Macroeconomics Resurrect the IS-LM Model? The Journal of Economic Perspectives, 7(3), 67-82.
  • Kimball, M. (1995). The quantitative Analysis of the Basic Neomonetarist Model. Journal of Money, Credit and Banking, 27(3), 1241-1277.
  • Poole, W. (1970). Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model. Quarterly Journal of Economics , 84(2), 241-301.
  • Turnovsky, S. J. (1975). Macroeconomic Analysis and Stabilization Policies, Cambridge, Cambridge University Press.
  • Tinseley, P. A. (1993). Fitting Both Data and Theories: Polynomial Adjustment Costs and Errors – Correction Decision Rules Board of Governors of the Federal Reserve System Finance and Economic Discussion Paper Series, 93-21,
  • Tsypkin, Y. Z. (1973). Foundations of the Theory of Learning, New York, Academic Press.
  • Zellner, A. (1971). An Introduction to Bayesian Inference in Econometrics, New York, John Wiley

Downloads

No downloads have been recorded for this article yet. Figures appear here once readers begin downloading the full text.

How to Cite

Das, A. (2012). Poole’s Stochastic IS-LM Model and Optimal Monetary Policy Rule: A Framework for Graduate Teaching. Journal of Education and Vocational Research, 3(4), 127-131. https://doi.org/10.22610/jevr.v3i4.59

Share this article

Section

Research Paper

Published

2012-04-15

Submissions

Have research to publish? Journal of Education and Vocational Research welcomes submissions.

Make a Submission