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NEW CLASSICAL ECONOMICS Definition & Legal Meaning

Definition & Citations:

Macroeconomic thought as a knowledge base. Emerging during the 1970s, based on roles known as rational economic agents, and rational expectations theory. It is seen as an extreme monetarism formulation. It argues that, even in the short run, demand-management intervention by governments is ineffective. It also advocates far reaching tax cuts. US economists John Muth (1930-2005) and 1995 Nobel laureate Robert Lucas, Jr. (born 1937), and the 2004 Nobel prize co-recipients in economics, US economist Edward Prescott (born 1940) and Norwegian economist Finn Kydland (born 1943) all contributed ideas and solidified it. It is different that neo classical economics.


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