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How Have Monetary Regime Changes Affected the Popularity of IS-LM?

Finally, what emerges clearly from this study of Keynes’s views on monetary policy are the close links between theory and policy. For every change in the problem at hand came new proposals growing out of previous theory or, if previous doctrine could not accommodate the new situation, shifts in his theoretical position. This is clearly illustrated (from a Keynesian point of view) by the evolution of Keynes’s views under the impact of British (and world) events between 1925 and, say, 1934. This interrelationship was the hallmark of Keynes, the economist. —Donald Moggridge and Susan Howson, “Keynes on Monetary Policy, 1910–1946” (1974)