TY  - JOUR
AU  - Romer,David
TI  - Keynesian Macroeconomics without the LM Curve
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7461
PY  - 2000
Y2  - January 2000
UR  - http://www.nber.org/papers/w7461
L1  - http://www.nber.org/papers/w7461.pdf
N1  - Author contact info:
David H. Romer
Department of Economics
University of California
Berkeley, CA 94720-3880
E-Mail: dromer@econ.berkeley.edu
AB  - Changes in both the macroeconomy and in macroeconomics suggest that the IS-LM-AS model is no longer the best baseline model of short-run fluctuations for teaching and policy analysis. This paper presents an alternative model that replaces the assumption that the central bank targets the money supply with an assumption that it follows a simple interest rate rule.  The resulting model is simpler, more realistic, and more coherent than IS-LM-AS, not just in its treatment of monetary policy but in many other ways.  The paper also discusses other alternatives to IS-LM-AS.
ER  -