Investopedia / Lara Antal Neoclassical economics is a broad theory that focuses on supply and demand as the driving forces behind the production, pricing, and consumption of goods and services.

For more than a century, neoclassical theory dominated economic thinking. Neoclassical economics is a theory based on three key assumptions: individuals have rational preferences; individuals maximize ...

The work of economists such as Friedrich von Hayek and Milton Friedman, who developed theories now known as monetarism or neoclassical economics, gained prominence. These theories proposed that ...

Nonetheless, it is what neoclassical economics has been doing, with the support of the IMF and the World Bank. A market, operating without concern for fairness, is also devoid of a modicum of ...

Faced with the scenario of tariffs and growing conflict not only in the geopolitical but also in the economic field, a ...

And as I worked in my own research, I showed that actually neoclassical economics a lot of times supports authoritarian regimes. So instead, the idea is that economics is based on social relations ...

Yet these assumptions often diverge sharply from the messy realities of economic life. Take the assumption of perfect competition. It’s a bedrock of neoclassical economic theory, claiming that no one ...