A school of economics based on the assumption that all economic agents hold rational expectations and that all markets clear. The consequence of this is a belief that unemployment is essentially voluntary, produced by the provision of perverse incentives by the state, and that discretionary government policies are destabilizing. This leads to the advocacy of laissez-faire policies, and to a belief that inflation can be controlled by strict monetary policy at zero real cost. Few economists believe this entirely, but many are affected to some extent by this type of analysis.

• claimant
• classical dichotomy
• classical model
• classical unemployment
• classification, industrial
• Clayton Act
• Clean Air Act
• clean floating
• clearing, bank
• clearing bank
• clearing-house
• clearing, market
• cliometrics
• close company
• closed economy
• closed shop
• closing prices
• clustering
• CMEA
• coalition
• Coase theorem
• Cobb-Douglas function
• cobweb
• Code, City
• coefficient