New classical macroeconomics

Not to be confused with Neoclassical economics.

New classical macroeconomics is a school of thought in macroeconomics based on a neoclassical framework. It emphasizes the importance of foundations based on microeconomics, especially rational expectations.

New classical macroeconomics uses neoclassical microeconomic foundations for macroeconomic analysis. This is in contrast with the new Keynesian school that uses microfoundations, such as price stickiness and imperfect competition, to generate macroeconomic models similar to earlier, Keynesian ones.

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