New Classical School

The New Classical School is an economic theory that emphasizes the importance of free markets and individual decision-making. It suggests that, in the long run, economies tend to balance out naturally through supply and demand. According to this view, government interventions, like adjusting taxes or spending, often do more harm than good, as markets are best left to self-correct. It also highlights rational expectations, meaning people and businesses make decisions based on all available information. Overall, the school advocates for limited government involvement, trusting that the economy adjusts efficiently on its own.