The Nature of the ADAS Model Based on the ISLM Model
The Nature of the ADAS Model Based on the ISLM Model
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基于ISLM模型的ADAS模型的本质
DOI:
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发表时间:
2007
期刊:
影响因子:
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通讯作者:
B. Rao
中科院分区:
文献类型:
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作者:
B. Rao
The aggregate demand and supply model (ADAS) is interpreted as a synthesis of the Keynesian and neoclassical models. It uses the ISLM model, without explaining its nature, to derive aggregate demand (AD). It is combined with an aggregate supply (AS) curve to explain price- inflation and output dynamics. This paper argues that neither the AD nor AS curve is conceptually the same as its microeconomic counterpart and ADAS is not a synthesis. In fact ADASimplies that discretionary policy is necessary and that price changes do not perform their traditional negative feedback function.