The difference between classical vs. Keynesian economics is that classical economics is based on the theory that the market is perfect and self-sustaining. It believes that no government intervention is required. John Maynard Keynes (Keynesian) economics is based on macroeconomics believes that the market is imperfect and not self-sustaining and needs help from the public sector, actions by the
. central bank and fiscal policy actions by the government whether it is reduction in interest rates or or investment in infrastructure. For more on these two theories visit http://en.wikipedia.org/wiki/Keynesian_economics
