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LSE became the first specialist School of Economics in the world when it was recognised as a faculty of economics in the newly constituted University of London in 1900. Its economics degrees were the first university degrees principally dedicated to the social sciences.

Some of the world's most influential economists can be found among the 11 academics associated with the School who have won Nobel prizes for their groundbreaking work in this subject.

Sir John Hicks, awarded the prize in 1972, developed the Hicks-Hansen IS-LM model, now a standard macroeconomic Keynesian starting point for all university economists.
The economic liberalism of Friedrich Hayek, who won the prize in 1974, came to define the radical free-market policies of Margaret Thatcher and Ronald Reagan in the 1980s. Implementation of his philosophy led to a reduction in unionisation and contributed to the political backdrop of the collapse of communism in Eastern Europe. Hayek's famous debates with John Maynard Keynes still shape the two major schools of economic thought today as nations attempt to balance the merits of a free market economy versus interventionist government policy.

Other Nobel winners include James Meade for his pioneering work on trade theory, and Sir William Arthur Lewis who developed the Dual Model of the economy that eventually became the foundation of much economic industrialisation theory.
Merton Miller was also recognised for his seminal work in the theory of financial economics, and Ronald Coase for his discovery and clarification of the significance of transaction costs and property rights for the institutional structure and functioning of the economy.

Amartya Sen's contributions to development economics, including pioneering studies of gender inequality, won him the prize in 1998.

Other prize-winning economists whose main careers have been elsewhere, but who have had strong clinks with the School, include Robert Mundell, George Akerlof, Leonid Hurwicz and Paul Krugman.

Although A.W Philips is not a Nobel laureate, he pioneered the Phillips Curve that has proved instrumental in the understanding of government economic policy on employment and inflation.

Lionel Robbins and William Beveridge were also key influences in the development of economics whose involvement in the outside world was substantial.

LSE economists continue to play an influential role around the globe, working for international organisations including the UN, World Bank and IMF. Many have served on the Bank of England's Monetary Policy Committee, which has had a major role in setting economic policy in the UK since it was founded in 1997.

 

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