The classical school

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The classical school of economic thought, which emerged in the 18th century, advocated laissez-faire policies, which emphasized free markets and minimal government intervention in economic affairs. This approach was prevalent until the Great Depression, after which Keynesian economics became more widely accepted. The classical school was mainly concerned with supply-side factors such as production, technology, and incentives, and believed that markets were self-regulating and would automatically correct imbalances over time. The idea that about half of the money saved would be invested is a specific concept within the classical school known as the savings-investment identity.

The Classical School