Question

what are the similarities and differences between the monetarist and new classical theories?

Answer 1

The similarity between new classical and monetarist theory was that they criticized the Keynesian economic theory on its explanation of stagflation and die to this failure the new classical economics was founded.

The difference being that the new classical theory was based on microeconomics concept of rational expectation unlike monetarist which is pro monetary role of central bank as an essential role to maintain stability. Money supply and role of government are important determinants of real output and growth in economy.