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Tavlas, G. Economic Policy Effectiveness in Hicksian Analysis: An Extension. Credit and Capital Markets – Kredit und Kapital, 13(2), 252-262. https://doi.org/10.3790/ccm.13.2.252
Tavlas, George S. "Economic Policy Effectiveness in Hicksian Analysis: An Extension" Credit and Capital Markets – Kredit und Kapital 13.2, 1980, 252-262. https://doi.org/10.3790/ccm.13.2.252
Tavlas, George S. (1980): Economic Policy Effectiveness in Hicksian Analysis: An Extension, in: Credit and Capital Markets – Kredit und Kapital, vol. 13, iss. 2, 252-262, [online] https://doi.org/10.3790/ccm.13.2.252

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Economic Policy Effectiveness in Hicksian Analysis: An Extension

Tavlas, George S.

Credit and Capital Markets – Kredit und Kapital, Vol. 13 (1980), Iss. 2 : pp. 252–262

3 Citations (CrossRef)

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Tavlas, George S.

Cited By

  1. A Note on Tax Multiplier

    Chang, Wen-ya | Lai, Ching-chong

    Credit and Capital Markets – Kredit und Kapital, Vol. 23 (1990), Iss. 3 P.351

    https://doi.org/10.3790/ccm.23.3.351 [Citations: 0]
  2. Economic Policy Effectiveness in Hicksian Analysis: A Note

    Klaus, Jaeger,

    Credit and Capital Markets - Kredit und Kapital, Vol. 14 (1981), Iss. 2 P.177

    https://doi.org/10.3790/ccm.14.2.177 [Citations: 1]
  3. The Positively Sloped IS Curve and the Balance of Payments: An Extension of Cebula’s Model

    Nicos, Yannacopoulos,

    Credit and Capital Markets - Kredit und Kapital, Vol. 15 (1982), Iss. 2 P.275

    https://doi.org/10.3790/ccm.15.2.275 [Citations: 0]

References

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Abstract

Economic Policy Effectiveness in Hicksian Analysis: An Extension

The speed with which macro policies exert their impact upon economic activity is a key consideration in current policy discussion. As Blinder and Solow argue: “The main issues of [macro] econometric debate for the near future appear to be over timing” [1, 88]. This note has considered the policy implications of two upward-sloping IS curve models which have appeared in the literature. Specifically, it has been shown that the interest elasticity of the demand for money -or the slope of the LM curve - involves differing consequences for the timing aspect of each model and the respective ability of each model to absorb exogenous shocks, Therefore should empirical evidence suggest that in the real world the IS curve slopes upward, it is important to identify the underlying mechanism. Finally, it has also been demonstrated that in a Cebula-type model the role of monetary policy would be limited to adjusting the money supply in a manner which pegs the interest rate at a certain level.