Shocking!

Posted: 10 October 2011 in Uncategorized
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This year’s Nobel Prize in Economics was awarded to Christopher Sims and Thomas Sargent, both mainstream macroeconomists.

Their research has focused on modeling and distinguishing among the effects of economic “shocks,” such as government monetary policy and changes in oil prices.

Here are links to the popular discussion of the work of Sims and Sargent [pdf] and to the more detailed explanation [pdf].

It should be shocking but, unfortunately, it is not that—in the midst of the Second Great Depression—the Nobel committee chose to award the prize to two mainstream economists whose work focuses on statistical techniques for empirically estimating exogenous disturbances to the economy and not on analyzing the possibilities of crisis that are endogenous to the economic system.

Comments
  1. Scott M. says:

    I don’t know if there is much relevance to what you wrote but it’s not really the Nobel Prize in Economics. It’s a prize set up by a bank to honor Mr. Nobel but unaffiliated with the Nobel Prize itself.

    At least that’s my understanding.

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