While a lot of the new classical economists’ conclusions were right, and they did actually warn about bubbles, the way they reached them and their methodology and philosophical understanding of the limitations to knowledge were flawed. People aren’t as rational as they assumed. They also wrongly downplayed the role of the money supply in causing cycles.
There’s an intellectual shift going on in economics, from the flawed scientism of the mathematical economists, towards a more realistic understanding of the complexity that is billions of people choosing and acting in a dynamic process which can never be perfectly understood. The implications for public policy should be profound.
A reading list, including slim primers, is here.