Macroeconomic Policy in the Period of a Pandemic Situation or What Lessons Have We Learned From the IS-LM Model?
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Indexed Research Publishing Company
Abstract
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This article focuses on the behavior of the IS-LM model along with the "liquidity trap", "risk" and "precautionary" traps. The authors proposed a number of mechanisms such as: the impact of the pandemic on the economy in the IS-LM model: markets for goods and services and borrowed funds, the mechanism of the impact of the pandemic on the economy in the IS-LM model: money and securities markets, government policy and interest rate dynamics.
Keywords
IS-LM model, liquidity trap, risk and precaution traps, COVID-19 pandemic