David Garca Infante Poltica Econmica Marco Penagos Universidad de la Salle

Cd.: 10101276

The IS-LM model of Hicks also does not include the labor supply curve and, therefore, neither the wage nor employment are set through the labor market. Nor, and therefore, provides mechanisms that always push the system towards full employment, it leaving the support of Say's Law. These results, oddly, not attributed by Hicks Keynes's contribution but the conventional wisdom was adequately reflected the classical theory. Moreover, Hicks Keynes attributed to some opinions and theories that are not theirs. But one way or another, it takes no valid criticism but the results of these criticisms and, cleverly, it does based on the IS-LM model that fails to reflect the main ideas of Keynes but that confuses and mystifies. It bears repeating that Hicks does not attribute what then will ISLM or classics or Keynes, but presents it as a slight modification, entirely reasonable, that is advisable to add and himself Keynes added to the system. The change proposes is, apparently, a small amendment to the preference for function liquidity is to recognize that besides depending on the interest rate, the demand for money, as proposed by Pigou and Lavington and even Keynes himself recognized. As Hicks, is the true general theory, which is Keynes' system only a special case since it only the interest rate could influence the demand for money. As, presumably, the dependence of money demand income level was a classic feature, not Keynes. He thus managed to encapsulate the alleged contribution within a general equilibrium model in two markets simultaneously, the use Walrasian and also is an achievement that is in the same line of the same Hicks performs on microeconomic theory of integrate price Marshallian vision within the framework Walrasian For Keynes, however, savings that can be determined by the marginal propensity to consume and not dependent in any way, directly, of the interest rate: Saving, in fact, is a mere residual.