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: Can someone explain the main differences betwwen classical and keynsian economics? : Thanks!! : Can someone explain the main differences betwwen classical and keynsian economics? : Thanks!! Neo-classical economics assumes that free markets are self-regulating, that demand will rise to meet supply without any intervention. Keynes asserted that stability is impossible without government intervenntion when demand falls too much. Keynes is less wrong than neo-classical theory, but both are wrong in principle. I can go further. Neo-classical economic theory assumes stable equilibria. Liquid asset free market data (stock indices, bonds, foreign exchange) provide evidence that unregulated markets are completely unstable. Furthermore, working out the consequences of the mathematics of neo-classical theory predicts that there are no stable equilibria and that utility does not exist as a function at all.
Approximate Word count = 420
Approximate Pages = 1.7
(250 words per page double spaced)
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