New Classical Economics

New Classical Economics is a school of thought that emphasizes the role of individual decision-making, rational expectations, and market flexibility. It suggests that people and businesses make decisions based on all available information, leading markets to naturally reach equilibrium. This theory argues that government interventions often can't effectively modify economic outcomes because people anticipate and adjust for policies, making such efforts temporary or ineffective. Overall, it highlights that economies tend to self-correct over time, with prices and wages adjusting to ensure full employment without the need for active policy management.