Towards a new vision of economic policy: Discussion around the new paradigm proposed by David Romer in “Keynesian macroeconomics without the LM curve”

Abstract

New Keynesians (NK) refer to an advanced posture compared to the traditional paradigm of the IS-LM equilibrium, which, as a tool, satisfied economic policy explanations for the moment. The model had critics like be considered not to have microeconomic foundations, among others. Perhaps at the times presented: Keynes, in 1936, with the General Theory, Hicks, in 1937, with Mr. Keynes and the classics; Samuelson in 1948 and subsequent years, with his work Economy, it provided important elements in the balance. However, a new approach was needed for the Twenty-First Century, and it is the one proposed by David Romer. The purpose of this article is to make an initial review for understanding how some aspects of economic policy are linked as elements of economic growth.