<p>You cannot construct off-equilibrium behavior from equilibrium realizations. The IS curve represents all (counterfactual) combinations of output and interest rates for which the goods market is at equilibrium (but typically not the financial markets). Similarly, the LM curve represents all (counterfactual) combinations of output and interest rates for which the financial market is in equilibrium (but typically not the goods market).</p>
<p>In contrast, the observed data would always represent the intersection between IS and LM curve, i.e. the joint equilibrium of goods and financial markets. That intersection does not contain any information on the respective curves themselves.</p>

CC BY-SA 4.0
2024-10-18T15:45:25.123Z
2024-10-18T15:45:25.123Z
jpfeifer
<p>For some simple IS curve you just need the real <a href="https://fred.stlouisfed.org/series/GDPC1" rel="nofollow noreferrer">GDP</a> and its components. Depending on how detailed you want to get you can simply search for individual components <a href="https://fred.stlouisfed.org/" rel="nofollow noreferrer">here</a>.</p>
<p>For a simple LM curve you need the real GDP as well (but you do not need the components), you will need the <a href="https://fred.stlouisfed.org/series/INTDSRUSM193N" rel="nofollow noreferrer">nominal interest rates</a> (or depending on how detailed you want to go you could opt for real interest rates and inflation), next you will want <a href="https://fred.stlouisfed.org/series/MABMM301USM189S" rel="nofollow noreferrer">money supply</a> and finally you will want <a href="https://fred.stlouisfed.org/series/CPALTT01USM657N" rel="nofollow noreferrer">price level</a> data.</p>

CC BY-SA 4.0
2024-09-18T14:35:11.657Z
2024-09-18T14:35:11.657Z
1muflon1
<p>I am studying IS-LM model in macro-economics. I am curious which data points to use to create an IS-LM curve.</p>

<macroeconomics><data-sources>
What data points to use from FRED to create a basic IS-LM model?
Amar Pant
# What data points to use from FRED to create a basic IS-LM model?

(Asked by: username_0 on 2024-09-18)

I am studying IS-LM model in macro-economics. I am curious which data points to use to create an IS-LM curve.

**Tags:** macroeconomics, data-sources


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## 2 answers

### Answer by username_1 on 2024-10-18. Score: 2

You cannot construct off-equilibrium behavior from equilibrium realizations. The IS curve represents all (counterfactual) combinations of output and interest rates for which the goods market is at equilibrium (but typically not the financial markets). Similarly, the LM curve represents all (counterfactual) combinations of output and interest rates for which the financial market is in equilibrium (but typically not the goods market).

In contrast, the observed data would always represent the intersection between IS and LM curve, i.e. the joint equilibrium of goods and financial markets. That intersection does not contain any information on the respective curves themselves.


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### Answer by username_2 on 2024-09-18. Score: 0

For some simple IS curve you just need the real [GDP](https://fred.stlouisfed.org/series/GDPC1) and its components. Depending on how detailed you want to get you can simply search for individual components [here](https://fred.stlouisfed.org/).

For a simple LM curve you need the real GDP as well (but you do not need the components), you will need the [nominal interest rates](https://fred.stlouisfed.org/series/INTDSRUSM193N) (or depending on how detailed you want to go you could opt for real interest rates and inflation), next you will want [money supply](https://fred.stlouisfed.org/series/MABMM301USM189S) and finally you will want [price level](https://fred.stlouisfed.org/series/CPALTT01USM657N) data.


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