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New Classical Macroeconomics

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Abstract

The new classical macroeconomics (NCM) attempts to build macroeconomics entirely on the foundations of market clearing and optimization by economic agents. It is also known as the rational expectations–equilibrium approach to macroeconomics. The leading figures are Robert Lucas of the University of Chicago and Thomas Sargent of the University of Minnesota, whose 1981 volume contains many of the formative contributions. Lucas (1977) and Sargent (1982) provide nontechnical accounts of the approach. Other leading figures include Edward Prescott and Neil Wallace of the University of Minnesota and Robert Barro of the University of Rochester.

This chapter was originally published in The New Palgrave Dictionary of Economics, 2nd edition, 2008. Edited by Steven N. Durlauf and Lawrence E. Blume

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  1. http://link.springer.com/referencework/10.1057/978-1-349-95121-5

    Stanley Fischer

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  1. Stanley Fischer
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    Fischer, S. (2008). New Classical Macroeconomics. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_830-2

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    • DOI: https://doi.org/10.1057/978-1-349-95121-5_830-2

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    • Publisher Name: Palgrave Macmillan, London

    • Online ISBN: 978-1-349-95121-5

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    1. Latest

      New Classical Macroeconomics
      Published:
      21 March 2017

      DOI: https://doi.org/10.1057/978-1-349-95121-5_830-2

    2. Original

      New Classical Macroeconomics
      Published:
      28 October 2016

      DOI: https://doi.org/10.1057/978-1-349-95121-5_830-1

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