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arXiv · 2606.05839

Comparison of Phase-Plane and Trend-Based Qualitative Analysis of a Dynamic Two-Dimensional IS--LM Model

Barbora Volná·Mirko Dohnal
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Abstract

We compare the classical phase-plane analysis of a dynamic two-dimensional IS--LM model with a sign-based trend approach. Applying both methods to the same specification, we examine which qualitative properties of the system can be established solely from sign relations and how these methods can complement each other. In summary, these two approaches capture complementary perspectives on the qualitative behaviour of the considered model, combining the detailed local classification of equilibrium dynamics provided by phase-plane analysis with the broader admissible qualitative structures captured by trend-based analysis.

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Barbora Volná, Mirko Dohnal. 2026-06-04. Comparison of Phase-Plane and Trend-Based Qualitative Analysis of a Dynamic Two-Dimensional IS--LM Model. https://arxiv.org/abs/2606.05839

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