Relaxation Oscillations in New IS-LM Model

Mathematics – Dynamical Systems

Scientific paper

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20 pages, 10 figures

Scientific paper

In this paper, we create new version of IS-LM model. The original IS-LM model
has two main deficiencies: assumptions of constant price level and of strictly
exogenous money supply. New IS-LM model eliminates these deficiencies. In the
second section, we prove the existence of relaxation oscillations in this new
IS-LM model.

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