Explain the policy implications of the classical economists' beliefs

The classical economists believed that the economy was self-regulating. Their view was that any recessionary or inflationary gaps would be eliminated through changes in the markets. They believed that wages, prices, and interest rates would adjust to clear any overproduction, or underproduction, of goods and services. Given that they believed that the economy could heal itself, they saw no need for government intervention in the economy. These beliefs caused the classical economists to advocate a macroeconomic policy of laissez faire.