14.8: Introduction to New Classical Economics
- Page ID
- 47512
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What you’ll learn to do: describe the basic tenets of new classical economics
Many contemporary macroeconomic models use rational expectations and Ricardian Equivalence theories in their predictions of future economic trends.
New Classical Economics is a neoclassical perspective that makes a stronger case for the ineffectiveness of fiscal & monetary policy to stabilize the economy. This case is based on two beliefs that are unique to New Classical Economics: the theories of rational expectations and Ricardian Equivalence.
Contributors and Attributions
CC licensed content, Original
- Authored by: Steven Greenlaw and Lumen Learning. License: CC BY: Attribution
CC licensed content, Shared previously
- Bustling with work and activity, The Wealth of the Nation by Seymour Fogel is an interpretation of the theme of Social Security.. Authored by: Voice of America. Provided by: Wikimedia. Located at: http://www.insidevoa.com/content/historic-murals-at-voice-of-america/1364570.html. License: Public Domain: No Known Copyright