New Version of IS-LM: Neoclassical Monetarism

Abstract

This study argues three policies for economies. The aim of those policies is to increase total demand by money supply. Global economy currently faces lack of money in markets and recession effect. First, neo-merchantalism is to use national currency in bilateral trade. Second, limited money supply is to supply money to sub-regions of economy. Third, neoclassical monetary uses channels in monetary supply. Channels in NCM policy are financial banks and firms. Financial banks and firms distribute money into business markets. Global economies may apply propositions of NCM currently to refresh economies with money.