Hicks model

(IS)

(LM)

ad hoc

Money supply

Short-term demand management

Policy effectiveness

Neoclassical synthesis model

(IS)

(LM)

, (PC)

ad hoc

Money supply

Short-termdemand management

Policy effectiveness in short term

Policy ineffectiveness in long term

Sargent-Wallace

model

(IS)

(LM)

(Lucas AS)

ad hoc

Money supply

Rational expectation

Policy ineffectiveness

IS-LM-NPC

Model

(IS)

(LM)

(NPC)

(Taylor Rule)

Optimization

Interest rate

Rational expectation

Policy effectiveness

Improve status of monetary policy

IS-MP-NPC

Model

(IS)

(NPC)

(Taylor Rule)

ad hoc

Interest rate

Policy effectiveness

Improve status of monetary policy