Output, the Stock Market, and Interest Rates
构建了一个扩展的IS-LM模型，强调资产价值（而非利率）与产出的相互作用，在理性预期下分析资产价值和产出如何共同应对货币与财政政策变化。
This paper develops a simple model of determination of output, stock market and term structure of interest rates. The model is an extension of IS-LM model and borrows from it assumption that output is determined by aggregate demand and that price level can only adjust over time to its equilibrium value. However, whereas IS-LM emphasizes interaction between the interest rate and output, this model emphasizes interaction between asset values and output. Asset values, rather than interest rate, are main determinants of aggregate demand and output. Current and anticipated output and income are in turn main determinants of asset values. It is this interaction that model intends to capture; its goal is to characterize joint response of asset values and output to changes in environment, such as changes or announcement of changes in monetary and fiscal policy. As above brief description makes clear, anticipations are central to story; assumption made in this paper will be one of rational expectations. The paper is organized as follows. Section I describes model, and Sections II-IV characterize behavior of economy under extreme but convenient assumption that prices are fixed forever. Sections V and VI extend analysis to case where prices adjust over time to their equilibrium value.