The Role of Neoclassical Macroeconomics in the Development of the World Economy

Abstract

New classical macroeconomics plays a critical role in the global economy, with its theoretical framework emphasizing free markets, rational choice, and the importance of monetary policy. In the development of the world economy, new classical macroeconomics has promoted the liberalization of capital markets and encouraged international investment and trade. Through the theory of marginal productivity, it focuses on the relationship between wages and productivity, proposing to adjust wage levels to reduce unemployment. At the same time, it emphasizes the impact of monetary policy and rational expectations on lowering the expected level of inflation. New classical macroeconomics emphasizes technological innovation and free market competition, promoting stability and growth in the global economy. Its theoretical contributions to resource allocation, labor market, and inflation control play a positive role in shaping the development of the world economy.