In this paper work is an overview of macroeconomic models to create a comprehensible text to see the functioning of the macroeconomy in modern conditions. Conclusion of the existing knowledge of the Croatian economy in a unique model indicated that the specific features of the domestic economy so much that require adjustment models to better explain the functioning of the Croatian economy and serve as a basis for economic policy. One of the most important models in macroeconomics is the IS - LM model that is the basis of modern macroeconomics. The model includes the interest rate as an additional determinant of aggregate demand, which increases if the interest rate is reduced. The model allows us to understand the determination of output and interest rates in the short term is called the IS-LM model, from the IS curve, which represents equilibrium in the goods market and LM curve, which represents the balance of the financial markets. IS - LM model shows how the interaction between the private market determine the aggregate income and the interest rate for a given price level within a closed economy. Equilibrium output and the interest rate is in their section. IS-LM model developed in the middle 1930s and 1940s by Nobel laureate John R. Hicks (1904th-1989th), and later Alvin Hansen (1887th-1975th). In the macroeconomic literature, this model can be found and called Hicks - Hansen's model. 3 The first part is an analysis of the macroeconomic model IS and market analysis of goods. It is processed only perform the IS curve and its progress. Further to this, analysis of the LM and the financial market. Further described is the total supply and demand, and its balance. At the end I looked at the current situation in Croatia that is important for the development of the macroeconomic models for Croatian economy.