Palacio-Vera, Alfonso - In: Cambridge Journal of Economics 29 (2005) 5, pp. 747-767
David Romer has proposed a new basic macroeconomic framework: the IS--MP--IA model. Its proponents claim that it represents the 'modern' view of macroeconomics. We show that the new framework remains closely attached to the neoclassical synthesis and, in addition, does not take account of: (i)...