This setting lets you change the way you view articles. You can choose to have articles open in a dialog window, a new tab, or directly in the same window.
Open in Dialog
Open in New Tab
Open in same window
Open in New Tab
Open in same window
Journal of Economic Perspectives: Vol. 9 No. 3 (Summer 1995)
JEP Volume. 9, Issue 3 | 
Previous ArticleNext Article
Sign up for Email Alerts Follow us on Twitter
Full-text Article (Complimentary)
View Comments on This Article (0) | Login to post a comment
Previous ArticleNext Article
Expand
Quick Tools:
Print Article Summary Email Link to this Article Export CitationSign up for Email Alerts Follow us on Twitter
Explore:
The Stories We Tell: A Reconsideration of AS/AD Analysis
Article Citation
Colander, David. 1995. "The Stories We Tell: A Reconsideration of AS/AD Analysis."
Journal of Economic Perspectives,
9(3): 169-188.
DOI: 10.1257/jep.9.3.169
DOI: 10.1257/jep.9.3.169
Abstract
This paper explains that the AS/AD model as currently presented in the tests is seriously flawed. It does not fulfill the minimum requirement of a model: logical consistency. Its component parts are derived from models that reflect different, and inconsistent, models of the economy. Moreover, the appropriate disequilibrium adjustment story that appropriately accompanies it is inconsistent with observed reality. In this alternative model, Keynesian adjustment occurs through shifting AS/AD curves along institutionally determined price level vectors rather than through movements along the AS/AD curves.
Article Full-Text Access
Full-text Article (Complimentary)
Authors
Colander, David (Middlebury College)
JEL Classifications
A22: Economic Education and Teaching of Economics: Undergraduate
Comments
View Comments on This Article (0) | Login to post a comment
