section_path: History of economic thought/Post-WWII economics/New classical economics
section_name: New classical economics
paragraph_text: New classical economics
  
  A more fundamental challenge to the prevailing Keynesian paradigm came in the 1970s from new classical economists like Robert Lucas, Thomas Sargent and Edward Prescott. They introduced the notion of rational expectations in economics, which had profound implications for many economic discussions, among which were the so-called Lucas critique and the presentation of real business cycle models.