Palacio Vera, Alfonso2023-06-212023-06-2120022255-5471b19919463https://hdl.handle.net/20.500.14352/64471Códogos JEL: A22, E10, E50, E60Romer has proposed an alternative macroeconomic framework, i.e., the IS-MP-IA model. Its proponents claim that it constitutes a ‘modern’ view of macroeconomics. We show that the new framework is closely attached to the neoclassical synthesis and, in addition, fails to take account of: (i) the recent empirical evidence on the short-run output-inflation trade-off, (ii) the recent work and evidence on the interdependence of aggregate demand and supply, (iii) the limits of monetary policy and (iv) the consequences for demand-management policy of (i), (ii) and (iii). Once all these aspects are incorporated, we have that short-run stabilization policy is non-neutral in the long run, loanable funds theory becomes irrelevant and aggregate demand becomes the crucial exogenous variable in the short run and, perhaps, also in the long run.engAtribución-NoComercial-CompartirIgual 3.0 Españahttps://creativecommons.org/licenses/by-nc-sa/3.0/es/technical reporthttp://www.ucm.es/centros/webs/fccee/https://economicasyempresariales.ucm.es/working-papers-cceeopen accessNeutrality of moneyNAIRUNatural rate of interestAggregate demand.Macroeconomía5307.14 Teoría Macroeconómica