IS-LM: The Hicksian journey

Summary In the economics profession John Hicks is mainly known for his work during the 1930s. This paper is aimed at tracing the further development of Hicks' thinking, focussing on his IS-LM apparatus. During the 1950s Hicks used IS-LM to elucidate several issues, as in his Trade Cycle book and his review of Don Patinkin's Money, Interest and Prices. In the ensuing exchange Patinkin showed several weaknesses of IS-LM and pointed to new directions for research: the development of more elaborate models of the transmission mechanism and disequilibrium theory. But Hicks did not really participate in these developments, since, owing to methodological considerations, his thinking diverged more and more from mainstream economics.I would like to thank Jürgen Backhaus, Peter de Gijsel, Jan Snippe, Vic Van Rompuy, Arjen van Witteloostuijn and an anonymous referee for their comments on a former draft. Naturally, only the author is responsible for the opinions here expressed, as well as for any remaining shortcomings.