The economy, according to classical economics, is self-regulating. The idea is that the government should stay out of it, and that the economy would eventually stabilize on its own, even if there are some bumps along the way. The classicals prefer the Fed's role to be that of a last resort. Until it became required to restore economic equilibrium. According to monetarist viewpoints, monetary policy is tremendously effective. Because monetary policy is also a way for the Fed to deal with a financial crisis, we may conclude that both the classical and monetarist schools believed that the Fed could handle a financial crisis. The central bank employs monetary policy to keep the economy stable. Classical economics refers to the main school of economic theory in the 18th and 19th century. The originator of classical economic theory, according to most, is Scottish economist Adam Smith. However, earlier contributions were made by Spanish scholastics and French physiocrats