macroeconomics, keynesianIn most undergraduate textbooks, the real-money demand curve M/P = L(i, Y) generates an LM curve that appears linear in i, Y space. It is often specified by a simple real-money demand model like M/P = aY - bi.
Are there any micro-models of real-money demand (e.g. Miller-Orr Inventory Model) that actually produce the hockey-stick LM curve that was central to Hicks’ interpretation of Keynes?
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