The new classical macroeconomics is a school of economic thought that originated in the early 1970s in the work of economists centered at the Universities of Chicago and Minnesota—particularly, Robert Lucas (recipient of the Nobel Prize in 1995), Thomas Sargent, Neil Wallace, and Edward Prescott (corecipient of the Nobel Prize in 2004). The name draws on John Maynard Keynes’s evocative contrast between his own macroeconomics and that of his intellectual forebears. Keynes had knowingly stretched a point by lumping his contemporaries, A. C. pigou and Alfred Marshall, in with the older classical political economists, such as David Ricardo, and calling them all “classical.”

Link to Full Article in The Concise Encyclopedia of Economics, Library of Economics and Liberty

 

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