Empirical evaluation of IS-LM model for selected economy

This thesis presents an empirical evaluation of the IS-LM model applied to the Slovenian economy.The analysis assesses the model's validity by examining key macroeconomic indicators, such as interest rates, investment, and GDP, over the period from 2015 to 2023.Using data for above mentioned variables and linear relationships, the empirical results indicate significant discrepancies between the theoretical IS-LM framework and real-world conditions, particularly during periods of macroeconomic instability in Slovenia.The findings suggest limitations in the model's applicability due to inflationary pressures and structural economic factors, which are not fully captured by the IS-LM model.