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.](https://s3-us-west-2.amazonaws.com/courses-images/wp-content/uploads/sites/2043/2018/02/21183710/The_Wealth_of_the_Nation_Seymour_Fogel-300x195.jpg)
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.