Roger Farmer has an interesting essay on evolution of macro thought (HT: Cafe Economics). It is actually an extract from his book Prosperity for All.
He reviews the history of macro thought and says New Keynesians miss a basic point from Keynesian view:
The program that Hicks initiated was to understand the connection between Keynesian economics and general equilibrium theory. But, it was not a complete theory of the macroeconomy because the IS- LM model does not explain how the price level is set. The IS- LM model determines the unemployment rate, the interest rate, and the real value of GDP, but it has nothing to say about the general level of prices or the rate of inflation of prices from one week to the next.
To complete the reconciliation of Keynesian economics with general equilibrium theory, Paul Samuelson introduced the neoclassical synthesis in 1955. According to this theory…
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Utopia, you are standing in it! 
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