This year's new economics Nobel laureate was announced today (Monday 9 October) as Edmund Phelps of Columbia University.
The prize was awarded 'for his analysis of intertemporal tradeoffs in macroeconomic policy'.
Professor Christopher Pissarides of LSE's Economics Department, and the School's Centre for Economic Performance, said: 'The prize was richly deserved and long overdue. Phelps made fundamental contributions to the analysis of economies in which the future has an impact on what we see happening in the present. Today we take it for granted that expectations about the future matter for policy. Phelps was one of the pioneers of this idea, and it is a measure of his success that we take it for granted today.
'One of his most important articles, "Phillips curves, expectations of inflation and optimal unemployment over time" was written in 1966 when Ned was SSRC research fellow at LSE, and published in Economica. A few years later his work was instrumental in my choice of PhD topic, and has since influenced many of us in our research on unemployment. Ned visited LSE frequently to interact with the economists at the Centre for Economic Performance, especially during the preparation of his 1994 book on Structural Slumps. We are all very pleased by the award.'
LSE academics Professors Pissarides, Nickell, Layard and Jackman are also mentioned in the long citation about Professor Phelps at http://nobelprize.org/nobel_prizes/economics/laureates/2006/ecoadv06.pdf
To read the full press release and citation, see the Nobel prize website at http://nobelprize.org/
Notes: LSE and Columbia University formed an institutional alliance in 2001 to develop a partnership to benefit research and teaching initiatives. These include joint projects on HIV/AIDS, the MPA programme and staff exchanges. For more, see the LSE-Columbia Alliance website at Research and projects
'Revolutionary' economist wins Nobel prize (10 Oct 06)
Article about US economist Edmund Phelps who has won a Nobel Prize, officially called the Sveriges Riksbank Prize in Economic Sciences. Includes quote from Professor Christopher Pissarides, of the Centre for Economic Performance: 'The prize was richly deserved and long overdue. He revolutionised our way of thinking about the inflation-unemployment trade-off, which has influenced policymakers since the 1960s.'
9 October 2006