Definition & Reality in the General Theory of Political Economy

by Thomas Cool

i = (C₀ + G + I₀ + NX + TRF - (1 - (1 - r) c) YR ) / b (IS)

For the money and bond market:

L + DB

WN / P

MX / P + SB

L = demand for real balances DB = demand for real bond holdings SB = real value of the supply of bonds

WN = nominal financial wealth P = price level MX = money stock (M1, M2 or M3) [71]