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New Classical Economics

 

 

The emergence of new classical economics in the 1970s can be traced to two sources.  First, John Muth's introduction of rational expectations was beginning to be recognized as a major theoretical advance.  Second, the oil shocks of the decade (1973 Oil Crisis, Wikipedia. 1979 Energy Crisis, Wikipedia) were clear candidates for interpretation as supply shocks.

 

 

 

 

 

New Classical Macroeconomics, Robert King, Concise Encyclopedia of Economics.

New Classical Economics, Wikipedia.

Rational Expectations, Wikipedia.

Policy Ineffectiveness Proposition, Wikipedia.

Lucas Critique, Wikipedia.

Comments?  Questions?  macro-at-econmodel-dot-com  Copyright 2006 William R. Parke