doi:10.1111/meca.12133engAlmudí, IsabelFatás Villafranca, FranciscoJarne, GloriaSánchez Chóliz, JulioRethinking Macroeconomic Policy within a Simple Dynamic ModelART-2017-95097We propose a simple macro-dynamic model to rethink standard policy prescriptions. Our model includes exogenous growth, endogenous capital accumulation and debt, demand-driven production with a non-linear IS curve, a dynamic Phillips curve, and fiscal and monetary policy instruments. It has multiple steady states with different stability properties, and it is analytically tractable to a significant extent. We complete the analytical results with simulations. We find alternative growth patterns, endogenous fluctuations, and demand-driven level effects even in the long-run. For certain steady states the model shows saddle-path type instabilities, which lead us to reflect on fiscal and monetary policy standards.2017http://zaguan.unizar.es/record/13064510.1111/meca.12133http://zaguan.unizar.es/record/130645oai:zaguan.unizar.es:130645info:eu-repo/grantAgreement/ES/DGA/S10Metroeconomica 68, 3 (2017), 425-464All rights reservedhttp://www.europeana.eu/rights/rr-f/info:eu-repo/semantics/closedAccess