Introduction to New Classical Economics

What you’ll learn to do: describe the basic tenets of new classical economics

The Wealth of the Nation by Seymour Fogel depicts five men in different fields of work.

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.