Two American Economists Awarded Nobel Prize
The Nobel in economic science was awarded to two American professors Monday.
Thomas J. Sargent, a professor at New York University, and Christopher A. Sims, a professor at Princeton University, won the prize for their independent, yet complementary, research on how changes in government policies affect the overall national economy.
Their work also considers the effect major economic shocks, such as repression or oil price spikes, have on an economic system as a whole.
Sargent and Sims began researching the relationship between policy changes and economic systems in the 1970's.
Their work was a mixture of historical analysis and economics. For example, Sargent examined how hyperinflation affected the European countries after the world wars.
Sargent and Sims developed methods that can help governments craft policies that will have as little disruption on the economy as possible.
The pair's research is especially timely as many countries are facing tough policy decisions after a series of economic shocks and crises have shaken the globe within the last few years.
“The methods that I’ve used and that Tom has developed are central for finding our way out of this mess,” Sims told the New York Times.
The two professors, who have known each other for decades, will share the award of $1.49 million.
