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The ISLM model, introduced in 1936-37 to provide interpretations of Keynes's General Theory, subsequently emerged in its Hicks-Hansen form as the workhorse and 'trained intuition' of post-war macroeconomists. However, ISLM is an essentially orthodox model based on neoclassical foundations and fails completely as an adequate representation of central elements of Keynes's macroeconomic thought. This article proposes IYLM as a replacement for ISLM, the new model being General Theory-compatible in that it is grounded only on key propositions in that work. Its purpose is to contribute, within the constraints of a two-market framework, to the resuscitation of Keynes's macroeconomics as an alternative to the inadequacies of much current macroeconomics. The first part of the article derives the model and argues that those sympathetic to The General Theory can accept the IYLM framework whilst simultaneously rejecting ISLM. The second part shows that Hicks- Hansen ISLM is based on an income-augmented form of orthodox loanable funds theory. [ABSTRACT FROM AUTHOR]

Aggregate structural macroeconomic analysis (ASMA) is frequently criticised for being ad hoc and justified (if at all) only as a pragmatic expedient. This paper argues instead that ASMA is consistent with the principles of well-established bodies of social theory. Appeal to these principles reveals that ASMA is adequate and likely even necessary for the successful prosecution of macroeconomic inquiry. [ABSTRACT FROM PUBLISHER]

(Reviewing: Great Thinker in Economics, Series Editor, A. P. Thirlwall, selection consisting of P. Groenewegen, Alfred Marshall, 2007; P. Davidson, John Maynard Keynes, 2007, 2009; G. Fletcher, Dennis Robertson, 2008; A. Roncaglia, Piero Sraffa, 2009; G. C. Harcourt and P. Kerr, Joan Robinson, 2009; J. E. King, Nicholas Kaldor, 2009, Palgrave Macmillan)Six volumes in the Great Thinker in Economics Series were chosen by the Editors for this review, which focuses on The Cambridge School of Economics, so very different from the mainstream theory of general economic equilibrium which gives formal expression to Lionel Robbins’ famous definition of the subject as the allocation of scarce means among alternative uses. In recognition of a distinct Cambridge School, the authors of these volumes present a variety of arguments within which three overlapping themes can be discerned: the relationship between ethics and economics; the role of stocks and flows in economic analysis; and the epistemic problem surrounding the role of creativity, which has eluded the skills of formalists. The once pervasive influence of Alfred Marshall, John Maynard Keynes, Dennis Robertson, Piero Sraffa, Joan Robinson and Nicholas Kaldor can only be recovered with some such set of general themes in mind. [ABSTRACT FROM AUTHOR]